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Economic Impact of COVID-19 on the Hospitality Industry Size, Share and Forecast 2019-2025

The hospitality industry is facing some major losses with the spreading of COVID-19 pandemic across the globe. The situation for most of the restaurants, hotels and other hospitality businesses is becoming very dreadful with time. COVID-19 pandemic is becoming major scrutiny for the hospitality industry. According to the American Hotel and Lodging Association, around 45% of all the jobs are being eliminated or will be eliminated that are related to the hospital industry due to pandemic. It would result in the loss of nearly 4 million hotel jobs in the hotel industry. There was a forecast of nearly 30% drop in the hotel occupancy over the year will be witnessed. Given the impact of a pandemic on travel demands, the hotel industry is registering a loss of around $1.4 billion in revenue every week.For instance, due to travel cancellation across the globe, Marriott Hotels is furloughing its thousands of employees from all of its branches. This loss due to pandemic is not only restricted to big hotel chains, around 33,000 small businesses hotel operations and franchise owners that represents 61% of the industry are also being affected.

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Due to the COVID-19 pandemic, multiple events related to entertainment and sports got canceled, postponed, or suspendedglobally due to government restrictions, which result in a huge disruption in the hotel booking and other hospitality services. Due to the cancelation of the annual event, hospitality local businesses are experiencing downfall, as these events have a large share in their annual traffic and sales generated. For instance, South by Southwest and Coachella, St. Patrick’s Day parades in cities such as Dublin and New York have been canceled.As China is the epicenter of the pandemic, the people of the country are restricted to travel in other countries. The most affected tourist destination visited traditionally by Chinese travelers includethe US, Europe and surrounded areas of China.

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Moreover, in major tourist cities,the restaurants’traffic also depends on tourists and with the restriction on traveling, it is becoming another source of turmoil for the hospitality industry. For instance, Starbucks, that has almost 4,300 outlets in China, the US has closed its more than 2,000 Chinese branches amide outbreak.Apart from tourists, the local population is also avoiding the hotels, amusement parks, and restaurants to practice social distancing as much as possible which in turn minimizing the business of the hospitality industry.

Verticals Affected Most

  • Food and Beverages
  • Travel and Tourism
  • Lodging
  • Recreation

Impact of COVID-19 on major economies 

North America

  • United States
  • Canada


  • UK
  • Germany
  • Italy
  • Spain
  • France
  • Rest of Europe


  • China
  • Japan
  • India
  • Rest of Asia-Pacific

Rest of the World

Company Profiles

  • Airbnb, Inc.
  • Burger King Corp.
  • Choice Hotels International, Inc.
  • Domino’s Pizza, Inc.
  • Expedia Group
  • Four Seasons Holdings Inc.
  • InterContinental Hotels Group PLC
  • KFC Corp.
  • Marriott International Inc.
  • McDonald’s Corp.
  • Starbucks Corp.
  • Subway Restaurants Inc.
  • Walt Disney Co/The
  • Wyndham Hotels & Resorts Inc. 

For More Customized Data, Request for Report Customization https://www.omrglobal.com/report-customization/hospitality-industry

About Orion Market Research

Orion Market Research (OMR) is a market research and consulting company known for its crisp and concise reports. The company is equipped with an experienced team of analysts and consultants. OMR offers quality syndicated research reports, customized research reports, consulting and other research-based services.

For More Information, Visit Orion Market Research

Media Contact:  

Company Name: Orion Market Research

Contact Person: Mr. AnuragTiwari

Email: info@omrglobal.com

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Source: Economic Impact of COVID-19 on the Hospitality Industry

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