Anti-covid policies and impact on hotel's pricing

Abstract

It has been more than a year since the Pandemic struck and brought the global economy to a standstill. The lockdown and social distancing norms have impacted the lifestyle of society. Some sectors like online delivery apps, online education sector, pharma sector, etc., greatly benefited and saw tremendous growth in the last financial year. Some sectors like automobile, hospitality, tourism etc. which were so adversely affected that their resurgence will be a big challenge in the future. One such sector is the premium hotels sector. The luxury hotel sector is bleeding as all the segments associated with the industry, such as corporate meetings, weddings, family gatherings, tourists etc., have been paralysed. The hotel industry in India was devastated by the onset of COVID 19 with a decline in revenue across the industry as travel was almost completely halted in the initial months, and consumer behaviour also changed concerning travel in the COVID era. The path to recovery for the sector is showing slow growth, with some reports showing pre-COVID growth levels only possible by 2023. This sudden shift in consumer behaviour has forced many players in the industry to take proactive steps to mitigate the financial implications that they are currently facing. In this context, it is essential to understand anti-COVID policies taken by different players in the industry. These Covid19 regulations have impacted the overhead costs of the hotels. The industry already recovering from losses due to the Pandemic is experiencing much lesser margins. This has led to a change in the pricing model adopted by the hotels.