THE IMPACT OF COVID-19 IN NUMBERS 0 181

This week we hear that Mauritius will only reopen its borders in September, not a wise move when you hear about countries like Poland and Sweden not restricting any lockdowns and their economies and tourism are less affected than most EU countries who were fooled into this plandemic which are now all on their knees, like Mauritius and many others. Those who are aware will know what we are talking about. Those who are still sleeping or are waiting what to do or to think well you shall come to realise what has really happened post US Election (soon).

For now let’s take a look at the Impact of Covid 19.

IATA Airlines magazine shares with us their industry stats and you must take a look at it click here.

Covid 19 in Numbers:

  • 90% of passenger flights were grounded taking out 40-45% of cargo capacity
  • Airlines will loses an estimated $84.3billion in 2020 as a result of the plandemic covid 19
  • 32m jobs (including Tourism) are estimated to be at risk
  • $550billion Airline Debt
  • 45% estimate a return to travel within one to two months
  • 36% indicates that they could wait six months or more

In conclusion:

IATA expects a slow recovery. Let’s leave it to that, for those who may of missed it, here is a great analysis by Travel Tech Entrepreneur Mario Gavira who shares his insights and solutions why Islands such as Mauritius will be most affected by Covid 19 despite been Covid Free so they say click here.

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POSSIBLE FUTURES FOR A POST-PANDEMIC TRAVEL INDUSTRY, PART 3 0 302

This series is focusing on how the industry might emerge from the disastrous set of circumstances that the travel, tourism and hospitality sector finds itself in.

The first of four scenarios – Travel swings back to normal in 2021 – was followed by a second idea: The end of mass tourism as we know it.

We continue with the next theory…

Scenario 3: Big is beautiful in the new travel order

This scenario sketches a fundamentally different outcome to the previous scenarios: the virus will prove to be more resilient than expected and the discovery and mass production of an effective vaccine will only become a reality in 2023.

Containment measures, including lockdowns and border closures, will be switched on and off during three years and overwhelmed healthcare systems all over the world will fall into a constant breaking point.

The virus brings the world economy to its knees

This asynchronous cycle of lockdowns across all regions will have devastating ripple effects on the world economy.

The desperate fiscal and monetary policy measures taken by governments and world agencies to try to absorb the shock will prove insufficient to break the downward spiral.

Supply chains across the world will not keep up with the on-and-off nature of the lockdowns, consumer confidence will fall off a cliff and monstrous jobless numbers will reach 1920s Depression-era levels.

Self-reinforcing recession dynamics will kick in, triggering widespread bankruptcies and credit defaults, and humanity will remain in a heightened state of anxiety between 2020 and 2023. 

The travel industry’s odyssey

Travel, deeply intertwined with the global economy and everything that moves this world, will be staring down the barrel of a deep recession for a long period.

With households in the middle and lower classes experiencing significant financial pain and foreign travelers being stigmatized as a sanitary threat, the industry will face a long and winding road before reaching the end of the crisis.

But, eventually, with a vaccine finally available at global scale and economies slowly getting back on their feet, the miracle will happen: human curiosity to explore the planet and connect with other cultures and people will prove to be stronger than any virus or economic downturn, and travel, like the proverbial Phoenix, rises from the ashes.

The travel industry, after an hibernation period of over two years, will look very different. The deep and dislocating shock and the path to recovery will be littered with bodies of companies that didn’t make the cut.

Companies with short cash runways, weak balance sheets or strong debt levels will struggle to stay in business with revenues down 60% to 90% over nearly 36 months. When revolving credit lines are shut down and taxpayer money from relief packages dries out, numerous travel firms will collapse or consolidate.

On the winning side, firms with deep pockets, resilient business models, superior marketing positions and strong public support, will manage to muddle through the economic meltdown and come out alive.

Who’s in, who’s out?
 
In accommodation, size will be a decisive factor in who survives the slump. Large hotel chains sitting on fat cash buffers and with a solid balance sheet will be in a good position to renegotiate their property lease terms with tenants and open and close properties across the world, based on the intensity of outbreaks in each region.

They will also have the capacity to leverage investments in their technology, integrating new systems such as sterilization robots and touchless devices. These global brands also have the firepower to implement and promote new hygiene protocols and certificates. 

Consumers, after the long crisis, will naturally gravitate towards trusted household brands, making large hotel groups the go-to option once travelers hit the road again.  

Many small- and medium-size hotel groups, after years of travel demand at minimum level, become cut-price acquisition targets for larger groups, sparking a strong consolidation process in the hospitality sector.

Numerous independent hotel properties will also decide to affiliate to larger groups, allowing them to tap into the power and reach of global brands. 

Hospitality unicorns like OYO or Sonder, enjoying hordes of venture capital cash in the pre-coronavirus era, will see the ground fall out from underneath their feet. Massive losses before entering the downturn combined with inconsistent guest standards linked to their frantic growth strategy will prove too much to survive the long downturn crush.

Turbulence in the air

Literally overnight, the virus outbreak reset the clock on an aviation boom that was the engine to the increase of global tourist figures from 818 million in 2010 to 1.3 billion in 2019.

Some governments will apply the “whatever it takes” mantra, conceding from unlimited loans up to renationalization, such as for perennially unprofitable Alitalia.
  
In stark contrast, low-cost carriers all over the world will be mostly left to their own fate, sparking a wave of consolidation.

A few of them will emerge out of the bloodbath thanks to their strong balance sheets, less crowded skies and low dependence on business travelers.

One or two mega low-cost carriers per continent will control most of the point-to-point intraregional traffic between countries, while domestic air travel will mostly be operated by publicly owned national carriers. 

Long-haul business will be concentrated into a handful global network carriers mainly from the Middle East and Asia, and the pre-crisis short-haul feeder system of international hubs based historically on airline alliances and interlining agreements will be been mostly replaced by loosely tied flight combinations connected through the NDC technology standard. 

With airline traffic experiencing a five- to six-year recovery cycle from the 2019 peak, aviation in 2025 will turn out to be a veritable smorgasbord of a few mega-carriers and a handful low-cost carriers co-living with state subsidized flag carriers that mainly operate money-losing domestic routes.

OTAs go shopping

As with the rest of the industry, travel intermediaries were busy during the crisis, reducing fixed costs and offloading struggling assets.   

Size, once again, will play a critical role. Asset-light online travel agencies with a global footprint, household names and a thick wad of cash will have the staying power to survive the long cash crunch and expand their footprint through bargain acquisition targets, such as regional brands and technology providers, to beef up their market dominance.

As Mauricio Prieto points out, they also were in pole position to capture the demand once travelers hit the road again: “Truly global intermediaries like Booking.com or Airbnb, which do not have a high dependency on any single geography, can quickly and opportunistically redirect business to the most promising geographies”

A driving force in the market will be large private equity companies, awash with cash and sharp deal-forging capabilities. Debt refinancing vehicles come with preferred stock clauses, allowing a selected group of private equity firms to jump into the boardrooms of the largest OTAs in the West. These new power brokers will spark a string of M&A deals in the industry, profoundly reshaping the travel distribution landscape.

Smaller intermediaries with limited refinancing capabilities cannot sit out nine to 12 months of a revenue drought. Many will stumble and fall.

A new kid in travel tech town

Amazon will come out of the crisis even stronger, thanks to the formidable capacity to flex its supply chain machinery to provide households with the most basic services during the lockdown.

After years of toying with the idea of entering travel, the retail giant will finally get serious with a string of acquisitions of struggling travel tech players, reshuffling the cards among the worldwide travel giants. 

Digital gatekeepers, Google and Facebook, which commanded more than half of the $330 billion online advertising business in the pre-COVID-19 world, will see travel-related revenue fall off a cliff once lockdowns spread across the world.

eMarketer’s 2020 pre-crisis prediction of $13 billion digital media spend in the travel industry is re-forecast to less than $5 annual billion between 2020 and 2022.

As a result, Google will quickly shelve its plans to keep expanding into the travel ecosystem and refocus its engineering resources to more promising verticals, such as telemedicine and e-learning.

Google and Facebook will keep playing a dominant role in the top of the travel user funnel, but the rest of the travel tech players will gain ground in the rest of digital ecosystem.

NATURELAND.MU ORDER YOUR PASTA, ANTIPASTI, OLIVES, WINES & SPIRITS ONLINE 0 448

With the latest Covid 19 restrictions in force in Mauritius which restricted businesses to operate within the hospitality sector, Nature Land Products Ltd had no choice to go online.

www.naureland.mu was created and born this May 2020. Natureland Products Ltd offers the very best Italians Products which you can get a 25% discount as from this weekend on all their products, you can also purchase French, South African and New Zealand wines and lots of spirits, pastas and sauces.

Vikash contracted the services of www.smartmedia.agency, www.mataora.com to develop their ecommerce store and digital marketing this 2020 and beyond.

Since www.hospitality.mu is the leader online for Hospitality Mauritius with its 1st position on Google and the search engine we know a thing or two how to best market your e-store and go online.

In less than 4 weeks, we had the site up with +650 products which are now being updated by their team. We are proud to have helped Vikash and Clothilde sale team to now have a new sale tool so they can go after their online sale market.

THE CEO – Vikash Ramjuttun

Natureland Products Ltd established in 1998 by Vikash Ramjuttun found its origin from his sudden passion for wine. Starting the business with practically no fund was the hardest part of it but perseverance, goals and vision were at peak. Over the years the passion for wine and culinary experience has grown.

Today we have a large selection of quality wines from France, Italy, South Africa, Australia, New Zealand including a range of good vintages of Grand Cru from Bordeaux and Bourgogne and other Cru wines from France and Italy.

We were the first to import some of the most respected appellations and cultivars from Italy, like Barolo, Barbaresco, Amarone, Taurasi, Prosecco, Franciacorta.

We are the leader in the market of Italian wines and can offer wines from North to South of Italy facing both the Adriatic Sea and the Mediterranean Sea and also fine consumables from Italy.

With Natureland online you can now order your wine and food and other consumables directly for Home Delivery. We have a dedicated team to process your order and an online sommelier to assist you with your wine selection and do your wine-food pairing. We are the best choice for your quality consumables and for the BON VIVANT.

Our team from Marketing, Sales to Delivery are professional and we strive to give our customers the best value products and service in all our sectors HoReCa, B2B & direct Online order. Our products are handled and delivered with care, observing hygiene, and safety standards. We meet the requirements set by the department of the Ministry Of Health and follow the protocol. Our wines are stored in temperature control cellar for good aging and delivery effected in temperature control vehicles.

QUALITY PHILOSOPHY

Our purpose is to source the best wine and food products that ‘Nature’ has to offer and to make these accessible to the Mauritian, Expatriates and Visitors on our beautiful island.

Another beauty of ‘Terroir’ is that it has a lot more than just WINE to offer and we also bring these ‘Products’ to you. We have it all !!  Our product range also include premium olive oil, truffle products, organic, vegan, gluten-free products, coffee beans, and mineral water. Only the best beverages make it on our list like Caffe Molinari and San Benedetto mineral water, Antica Fonte Della Salute millennium mineral water.

We continuously innovate our variety of products with carefully selected wines, beverages, and food products from Italy, France, South Africa, Australia, New Zealand, UK, Japan, as long as these quality products offer customer satisfaction and value for your hard earn money.

Do not hesitate to contact us for your ecommerce store and your digital marketing solutions.

We are now working on our own marketplace for Hospitality where you will be able to sign up and sell your products on our portal.

If you are looking to get more leads/traffic to your site, we have many banner advertising for lease simply email or call us on 57 94 64 37.