Assetsoft - Blog #International travel

Travel Industry Recovery in 2023: The opportunity for real estate

Thu, 21 Jul 2022 08:23:00 -0500

Corporate travel had the biggest hit during the pandemic and took the longest to recover. Leisure and holiday travel still saw a better picture due to extended remote working options for most employees across the globe. Most companies had offered indefinite work-from-home options when the pandemic began, and most people indulged in “workations and staycations” in local areas. But this category of people was not much; only a certain amount of people indulged in these trends, but it at least helped the hospitality industry stay afloat.

During the pandemic, most companies cut down on their budget for corporate or business travel. Most corporate meetings happened online, and the need for travel became thinner. But the primary revenue for the hospitality industry comes from corporate travel and business tours of different companies.

It became all the more certain that leisure travel would recover much faster than corporate travel. Exactly like local and domestic travel would recover much faster than international travel.

Thankfully, the picture is not so grim anymore; recent reports by the US Travel said that more than 85% of American companies are now restarting their investments in business travel, which is a significant shift from the last two years.

Europe and American tourism recovered the fastest

The World Tourism Organization (UNWTO) of the United Nations has shared reports that Europe and America have been showing the best recovery rates in tourism than any other nations. In 2020 and 2021, it was - 68% and - 62% in both places. Europe and America saw better international arrivals since January 2022, but still at - 53% and - 52%, respectively. Among these, Asia is the worst hit, with international tourist arrivals still lying at - 93%.

Note - All of these reports and data are in respect to travel reports of 2019 or the pre-pandemic time.

A strong start in 2022, but uncertainties persist

In January 2022, international travel had a solid start, unlike in the past two years. According to UNWTO reports, global international tourists increased more than 130% in 2022 compared to 2021. International travel saw a 71% decline in 2021. At the beginning of 2022, the number is 67% below the pre-pandemic levels. The trends look positive, but the industry has a long way to go before a complete recovery. There are still many uncertainties looming over this industry, like the sudden increase in COVID-19 cases. Also, the Russia-Ukraine crisis has caused major havoc in European travel.

International travel is set to bounce back

According to Deloitte research on travel trends for 2022, the current low COVID-19 infection rates, high vaccination rates, and eased international travel rules are helping the industry bounce back to its pre-pandemic state. The progress is slow, but it holds a lot of opportunities for hospitality real estate.

Why? The pandemic and the new remote working crowd have different demands from the tourism industry than they had back in 2019. The hospitality industry needs to adapt to these to make the industry boom and get back in its original shape.

Opportunities and trends in hospitality real estate

The best approach in these times is to not wait for “normal” pre-pandemic times to get back. The hospitality industry must adapt to the new trends set by the pandemic and make the best out of the situation to boost business. Here is a list of opportunities and trends in the industry that can help your real estate business.

Sustainable real estate is crucial

The climate crisis has become one of the major issues with the present generation, and they want to opt for sustainable tourism options while traveling. Eco-friendly hotels, nature-inspired tours, low waste generation, and minimal carbon emissions are things that hoteliers can focus on to attract millennials and Gen-Z tourists.

Digital hotel management systems

Technology selection in hotel management is very vital in the present scenario. You have to adapt to digital check-ins through websites and apps and also have digital payment options and virtual tours of hotels for potential customers. All of these can be done with property management software or drones, RPA technology, IoT devices, and AI-powered tools. They will also help you stay connected with your customers, even without physically meeting them, and streamline the management process.

More open spaces for health and well-being

Build your hotels in a way that they have more open spaces. Post-pandemic, most travelers have started to focus on their health and well-being, and you need to offer dedicated spaces and tour options to attract this crowd. Things like spas and yoga centers are trending to help people focus on their health even when they travel.

Offering hybrid stays

With many companies like LinkedIn and Twitter giving permanent remote working options to their staff, many people are indulging in “workations.” Hotels and the hospitality industry need to offer leisure options and dedicated workspaces in the same place to cater to this crowd. Leisure and business travel are now being blended together to form this new hybrid travel trend, and you need to tap into this market for better business.

Personalized experience with CRM

Hotels need to treat all their patrons with more personalized and customized experiences. A technology selection and use of CRM software will help you quickly respond to your guests' needs and never lose out on business.

Travel Recovery in 2023

Though the travel industry is recovering, there is still a long way to go before business gets back to its original state. To not lose out on customers in these critical times and highly volatile markets, you need to go that extra mile to get satisfied customers and win their customer loyalty. Plan your strategy and leadership in a way that you can take all of these trends into account to help in your hospitality real estate business recovery. Contact Assetsoft to help you in this journey and manage your projects better for greater success.

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Canada's Hotel Industry Seems to Rebound in August

Mon, 13 Sep 2021 01:07:15 -0500

With the pandemic waning, most of Canada’s provinces have reopened using a step-by-step approach. For the country’s hospitality industry, this means more people, tourism, and revenue.

Last year, the hospitality industry was one of the hardest-hit sectors due to the pandemic. The hotel occupancy rates plummeted to an all-time low in April 2020, with 81.2% of the hotels being vacant. Now, the industry is already seeing a gradual recovery, with Toronto hotels having a 43% occupancy rate in July.

Adding to it, the Canadian government has introduced new measures which allow more tourists into the country. With these guidelines, more international tourists are willing to visit Canada for business and leisure. What does this mean for the Canadian hospitality industry? Read on to find out.

What was expected?

The sudden travel ban due to Covid-19 forced hotels to shut down or work on a low revenue. As the sector hit rock bottom, many industrialists were hoping to drive occupancy in the coming years. A study by HVS predicted a 15% rise in the market value of the Canadian hotel industry in the year 2021.

Hotels attempted to reduce losses by offering rooms and services at a discounted price. Yet, due to the Covid crisis, not many preferred traveling or staying at hotels. But, as predicted, 2021 has been a promising year for the hospitality industry.

According to CBRE, a commercial real estate company, hotel occupancies across major Canadian cities will range from 31% to 37% this year. Though these rates are far from pre-pandemic times, they are showing a gradual increase when compared to the rates in 2020.

What boosts the recovery?

With the vaccination rates increasing all over the world, more people are open to international traveling. Several countries, including Canada, have eased the guidelines and allowed international tourists to enter the country. From a surge in leisure tourism to essential business travel, many factors are boosting the hospitality industry in Canada.

Reopening of provinces

The country is gradually reopening provinces using a methodological approach. Some states are in the last stage of reopening, while others, like Ontario, are in the second or third stage.

Residents are seeing it as an opportunity to travel within the country. Boosting the revenue of the hospitality industry. A report by CBRE states that domestic travel is the key to driving hotel occupancy, with a 75% to 80% share in the total tourism revenue of Canada.

Provinces like Ottawa are coming up with programs to boost tourism. Hotels in the province are offering packages at discounted rates, especially for advance bookings.

International tourism

Canada welcomed the U.S. citizens and permanent residents back into the country starting August 9th. Lifting a 17-month travel ban across borders, the country mandated all travelers to be fully vaccinated.

Later, on Sept 7th, the Canadian government introduced new guidelines for international visitors from other countries. The measures make it easy for tourists, both essential and non-essential, to travel to Canada. Out of the several guidelines, visitors are required to produce a Covid-19 molecular test report and also be asymptomatic.

As international travel reopens, the industry counts on “revenge travel” by tourists who couldn’t travel during the pandemic. Even otherwise, the country can expect a surge in the hotel industry revenue due to non-essential travel.

Essential business travel

Business travelers from across the world want to travel again to boost their business. Many believe that their business will suffer without traveling. A survey by SAP Concur reveals that 96% of the participants are willing to travel for their business in the next 12 months. Among them, 36% want to stay in hotels on their next business trip.

What does the industry want?

Even though hotel occupancy rates are gradually rising, the hospitality industry is facing new problems. Several hotels are unable to return to the pre-pandemic condition due to the following reasons.

Labor availability

As the industry revenue plummeted, many hotels laid off employees due to the lack of business. Now, as the business recovers, hotels are finding it difficult to rehire staff. Very few have returned to their previous company and many have joined other businesses during the pandemic.

Vaccine Passport

The hospitality community is also pressing for a vaccine passport to keep its employees safe. Hotels will treat such passports as proof of vaccination, and allow customers to enter restaurants, lodges, and other buildings.

As the hospitality industry requires close interaction between people, a vaccination passport is essential to maintain the health of all its employees. As Tony Elenis, president of ORHMA, told CBC, vaccine passports are one of the most efficient ways to protect the industry from another lockdown in the face of the delta variant.

What can we look forward to?

Many industrialists believe that the hospitality industry will see a full recovery in the coming years. The HVS Hotel Industry Outlook report predicts a return to normalcy by the year 2024.

Even though tourism is increasing hotel occupancy, considerable revenue only comes from large bookings such as meetings and conventions. Currently, hotels are receiving fewer bookings from smaller groups for events and meetings. But larger conventions are generally booked in advance, hence, hotels are looking towards 2022 or even 2023 for considerable business.

Additionally, hotels are also relying on the increase in vaccination rates to boost their revenue. As Canadian guidelines require tourists to be fully vaccinated, increasing vaccination rates are making more people open to international travel.

Prepare for the rising demand with Assetsoft

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Our software integrations help you improve tenant communication, collect online payments and analyze property data. We ensure continued support in the form of data integration, software health checks, and staff training. By choosing Assetsoft, you don’t have to worry about your technology needs anymore!

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