Coronavirus (COVID-19) - Travel & Tourism sector Impact - 04 August 2021

Globaldata's report on the impact of COVID-19 in the travel & tourism sector includes detailed coverage on the travel & tourism sector analysis, COVID-19 impact and sector insights among others.

COVID-19 has now spread to over 198 countries with a total of more than 194 million confirmed cases and over 4 million deaths. The number of confirmed cases is the US is over 34 million, with cases again rising after sustained period of declines. As in many other countries, most new cases are of the Delta variant, with hospitalizations also on the rise (97% of those admitted are unvaccinated). Total COVID-19 vaccine doses administered has now surpassed the total number of confirmed cases, with a total of over 2.9 billion single vaccine doses administered. China leads in the total number of vaccinations, while Canada leads amongst top economies in percentage of population that has received at least one dose of the vaccine.

A concrete summary of the impact of COVID-19:

• Hiring prospects appear to have been gradually improving since April 2021

• Nearly 45% of employees report an increase in productivity during WFH

• Most offices will return to at least 50% capacity in the next six months

• 3 in 10 employees prefer to visit their office daily after the pandemic

• Technology will continue to change the way we work over the next three years

• Artificial intelligence is driving change in working practices

• Most respondents continue to work from home full-time

Sector insight:

• Vaccination rates continue to underpin the recovery of many markets and the travel and tourism sector. Vaccination passports are beginning to support the return of international travel with some countries allowing travelers to bypass testing and quarantine requirements if fully vaccinated against COVID-19

• Domestic tourism remains an area of intense focus and has led to significant price surges in some markets. Lockdown measures have created a desire for people to travel and see something outside of their immediate environs. However, travel restrictions and the slow rollout of vaccination programs in several markets mean options are limited and this has created interest for travel domestically. Even though some borders are re-opening, tourism boards continue to shift their focus towards attracting people from their home (domestic market)

• The COVID-19 pandemic shut down most cruise lines since March 2020 but there are areas of the world where cruise ships are restarting. Mostly in Europe and Asia, there are various single nationality cruises calling in at a limited number of ports. August 2 saw the UK government lift its international cruise ban and international cruises from England were permitted. In the US, cruises resumed to Alaska. Many cruise lines now require a negative COVID-19 test or proof of full vaccination. With demand for cruising low and a limited return thus far, the short-term outlook for cruises still seems bleak

• Many intermediaries are now focusing on experiences as a primary focus with partnerships becoming more common. Recent partnerships include Trivago's (Expedia Group) partnership with Musement, TUI's experiential subsidiary and Booking.com's attraction partnership with Viator (TripAdvisor). As travel remains restricted, tours and activities look to be another revenue stream, although reduced capacities at sites limit even this positive

Download our free report for more detailed insights on the impact of COVID-19 in the Travel and Tourism sector.