How hard will the coronavirus hit the travel industry?
The coronavirus pandemic has impacted every industry all over the world. All the industries face numerous challenges because global demands cannot be met. There is a hindrance with respect to the operations of all these industries. This is primarily due to the fact that all the firms have been a victim of the lockdown that has been implemented all around the world. In these current circumstances, the entire supply chain systems of these industries have been subject to many changes. Hence the supply and demand state is very unbalanced owing to significant uncertainties throughout the world. These industries are unable to function at full capacity, and now it has become even to survive, let alone realize great profits.
The travel industry is one of the industries that is most affected by coronavirus disease. It is estimated that if the pandemic prolongs, a global loss of 75 million jobs and $2.1 trillion in revenue. In America alone, the travel industry is the hardest hit. In the USA alone, weekly jobless people increased by over 6 million.
Thousands of empty hotel rooms and canceled flights mean that the airline industry has also suffered a lot along with the hospitality industry. Airlines throughout the world have been grounded across the globe. More than 60% of the world’s air flights have been suspended owing to the government’s strict orders of quarantine. The performance of Delta Airlines showcases an example of the negative impact the coronavirus has had on the industry. Delta Airlines, one of the largest airline carriers globally, has reported a loss of approximately $60 million each day. This number is still expected to increase daily. Over 600 aircraft are parked on the ground as well. The upcoming months predict a similar story with the worst yet to come in many countries.
Public Transport Sector
Similar is the case with respect to public transport. Almost all public transports have been shut down all over the world. Public transport possesses a threat of carrying infections, and that can prove to be very dangerous in the spread of the virus. Busses, trains, rickshaws, lorries, and other means of transports are currently parked at their respective bays. Since the operations are stuck and the costs increase daily, the public transport sector is also suffering a great deal as well.
One of the significant chunks of the travel industry is the hospitality sector that is primarily responsible for taking care of travelers with respect to their food and shelter. The people are not allowed to travel, and those of the people who are allowed to simply cannot go because of governments’ restrictions. This means that hotels and restaurants cannot serve these people. Mostly the hotels, motels, hostels, and restaurants throughout the world are also closed. This means they are suffering immense losses as well.
It is very simple. Unless the lockdown is finished, no industry can expect to get off and running. Similar is the case with the travel industry. This industry will also have to wait for the dust to settle and make appropriate changes when the time is right.