covid 19 is a global pandemic that has shaken the global economy
Broadly, covid 19 is a global pandemic that has shaken the global economy with room business in the hotel industry being the most affected. According to Dinarto (2020), as from 13 May 2020, out of 10 seven rooms were empty across the globe in addition to the thousands of hotels that have been shattered completely. Since the issue of covid 19 was announced as a global health pandemic in mid- February, the hotels in the United States of America lost more than $23 billion in the revenue of the rooms. The pace meant a loss of $2.8 billion, each an increased hotel closure as time went on. The human toll is also very devastating, with the hotels being on pace to losing about $4000 million in the revenue of the rooms each day based on occupancy, which currently rates at revenue trend. The hotel’s room has also initiated direct lay off furloughed to workers in the hotels losing an estimated amount of $ 2.4% billion per week’s earnings. This analysis will examine the pandemic has brought about a steep decline in the occupancy demand in the services of the hotels giving hotels owners and operators with tough decisions to make on whether they should remain on the operation or close their room services operations during this deadly pandemic period, (Dinarto et al., 2020), mostly, the room business in the hotel industry are considered as being mandatory and hence they should not be subjected to any permanent closure. Also, the analysis will take a look at the hotel industry management where they are faced with economic decisions that are very contractual as to whether they should remain open. The room business managers are considering management contracts, and with documentation of loan documents, long term booking loans making it very difficult to close their doors. The analysis will look at how the hotel’s managers have been given an alternative to use their rooms as an alternative to host the medical professions to there rooms of operations.
Conclusion
Conclusively, the coming few months post a great challenge to
the room business in the hotel industry as the world continues to curb the spread of Covid 19. the hotel’s industry is really struggling with occupancy of there employers making it difficulties to make debt payment on there services seeking to being relived from services, lenders on the loans. the room business are facing a great challenge since they have to pay off there loans debts to be paid. this analysis have examined the pendamic has brought about steep decline
in the occupancy demand in the services of the hotels giving hotels owners and operators with tough decisions to make on whether they should remain on operation or close there room services operations during this deadly pendamic period. also the analysis have also will taken a look on the hotel industry management where they are faced with economic decisions that are very contractual as to whether they should remain open. other topics discussed in the analysis include the drop on demand of the rooms. the employees are also at a very great risk to being affected with the virus due to people coming in and out of the rooms without proper tasting. the employees
are faces dales in payment during this period since there room business is making significant loosss during the corona virus pendamic. the analysis has taken a look on how the the hotels managers have been given an alternative to use there rooms as an alternative to host the medical professions to there rooms of operations. the hotel managers are negotiating with the government to reduce rooms business revenue since the business have significally droped amid covid 19.
Dinarto, D., Wanto, A., & Sebastian, L. C. (2020). Global health security–COVID-19: impact on Bintan’s tourism sector. RSIS Commentaries, 033-20.