
Information technology allowed the tourism and hotel industries to make great leaps of innovation. However, it is becoming a hindrance for the same industries that are trying to reopen and recover from the pandemic.
Technology has changed the world tremendously. It has made life easier and more convenient. The tasks that used to take days can be completed in hours and minutes with the help of technology. It is hard to imagine life without technology nowadays as it has become an integral part of daily life.
Travelling has evolved with the advent of technology. Some people are hesitant to travel because it seems like too much trouble. Planning a trip is a time-consuming process and people often have difficulty finding time to do so. But thanks to technology, it has become easier for people to plan trips because it saves time and helps in efficient planning.
Aside from quickly planning trips, the Internet makes it easy to search for essential information on the weather, place, and rates. It's a lot easier to book your flights, or even look out for good deals online. Your packing routine can become more organised, your travelling experience can be safer, and, if you get lost, you're assured that you can find your way back.
It is also thanks to technology that the tourism industry has grown to become a key driver for socio-economic progress in many countries. However, this highly dynamic growth rate can be accompanied by different issues that affect tourist enterprises and prevent them from growing. Let's briefly discuss the others, as they also affect the technological barriers of tourism.
1. Re-opening Challenges
With different countries dealing with the pandemic at different rates, with different rates of recovery and vaccinations, it is difficult to tell when it is acceptable to open borders to other countries. Hotel industry leaders and operators are left with questions and no clear answers. While there is already a vaccine for the coronavirus, there is no telling that the virus won't evolve and spread in new ways.
2. Changing Expenses
Higher and fixed variable expenses because of government-mandated social distancing and cleaning ordinances are a substantial factor and vary depending on country and city. There are questions about how to pay staff who may not be doing significant work, how to remain profitable when there are redundancies in the staffing, so on and so forth. These factors can greatly affect short-term expenses in the industry.
3. Low Occupancy
Because of the pandemic, most hotels were turned into government-run quarantine hotels, preventing these places from taking travelling guests. While this was a side effect of the pandemic and part of the country's efforts to lessen the strain on hospitals, low occupancy means that it is difficult then for the hotel industry to break-even with their expenses. During the height of the lockdown, hotels had an occupancy rate of 0% and 20%, and 40% and 65% during reopening. This is likely to carry on for as long as there are still bouts of outbreaks in focused areas.
4. Pricing Elasticity
Another effect of the pandemic is the shutdown of the entire global economy. There were days where suppliers, exporters, and importers had to quarantine because of health protocols. Goods that came from another place had to be properly disinfected, causing them to cost more. With social distancing also in place, the demand for an exclusive and high-class hotel stay is far from everyone's priority. This lack in demand may mean that the industry will have to lower their prices.
5. Reinforced Lockdowns
There have been spikes in COVID-19 cases in different countries and cities, particularly in the metro where most foreigners and travelling locals will have access to. This may be caused by cities that may have reopened too quickly or people who are not observing proper social distancing protocols, as seen in countries like China, South Korea, the UK, the US, and Australia. The result is reinforced lockdowns of cities with significant implications for the hospitality industry trying to make an attempt to recovery and normalcy.
6. Health and Wellness
Because of the healthcare crisis we collectively went through, there is a resurgence for multipurpose spaces that promote health and wellness for the general public. We can see this in public parks and malls that offer free sanitation services or a sudden increase in local farmers market. Offices now have small outdoor gardens and introduced indoor plants in their employees' cubicles. For hotels, these design upgrades come at a cost and will take months to implement, especially when there is a growing demand for more sustainable accommodation.
7. Technology
Now, all of this takes us to the technological barriers of tourism. Aside from upgrading the accommodations to be health-centric, hotels will need electronic devices and systems that will allow guests to follow contactless directives. There will be contactless thermometers and scanners that will keep guests safe from a healthy distance. Digital technologies will now become the norm, especially when people order room service or try to interact with the staff.
Aside from the extra expenses, there will be difficulties in implementing these technologies. With the hospitality industry facing these challenges, it's important to have the right tools that work best with your system.
There are significant short and long-term challenges, where we will need to reevaluate our balance sheets and certain positions. It will definitely take some time for the global hospitality community to recover in a renewed and innovative form.
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