Due to COVID-19, the accommodation industry’s labour market and finances experienced historic contractions in the second quarter of 2020, with no full recovery expected in the foreseeable future.
The nature of the accommodations industry does not allow for much flexibility during the pandemic compared with other industries. Therefore, government support is necessary in the short term while restructuring is needed for long-term growth.
Even when a vaccine is globally distributed, the industry will continue to experience restructuring. Businesses will look for new technologies to replace workers while adhering to public health protocols.
The impact on profit margins has created opportunities for established brands to increase their market share in this industry.
