TECH BUYER Apr 2020 - Tech Buyer Presentation - Doc # US46187920
COVID-19 Hospitality Industry Impact
This IDC Tech Buyer Presentation highlights COVID-19 impact on the hospitality industry. The outbreak of the novel coronavirus (COVID-19) has struck a blow to industries across the globe, but perhaps none so fierce as the one dealt to hospitality and travel. With the virus still uncontained in many regions and fragmented government responses, uncertainty and fear has led to a near standstill in travel, widespread hotel cancellations, and restaurants are faced with shifting business entirely to takeout and delivery. Organizations across the industry adjusted growth estimates for 2020, with projected earnings to be conservatively 40-50% less than what was predicted before the outbreak, depending on the length of the pandemic.
The impact to demand for hospitality is greater than many other industries, but it is varied even among hotels, air and cruise lines, and restaurants. With both business and leisure travelers canceling planned trips and not scheduling any for the near future, hotels and airlines are operating at half capacity. The crisis is already separating out winners and losers by those that had strong digital presences and strategies to drive business. This is keenly felt in restaurants where online orders, which had represented a fraction of order volume, have become the primary revenue driver as business shifts entirely off premises.
Investments in technology across hospitality in the near term will be focused on solving immediate challenges and provide or bolster new business opportunities as legacy streams of revenue have dwindled. Organizations that are nimble and adapt technology strategy to maximize workforce and operations while leveraging data to power customer experiences and win loyalty will find a faster path to recovery. Some of the technology that will enable this rebound:
- Online and mobile ordering
- Loyalty programs (data-driven marketing/content management)
- Remote and virtual training/onboarding tools
- Flexible network infrastructure, edge applications
- Contactless payments
- CX (customer experience)
- AI-enabled assistants (i.e., chatbots)
- Security solutions
- Health and sanitation monitoring
Analytic applications, Augmented and virtual reality, COVID-19, Cognitive/artificial intelligence, Content management, Customer relationship management applications, Internet of things, Technology buyer, eCommerce