What do the next twelve months hold for airlines and hospitality businesses? So much depends on the speed of the global COVID-19 vaccine rollout. Amazing progress is being made in some countries, while others are lagging.
In addition, the profile of demand has changed fundamentally—and in some ways permanently—as companies around the world realize much of their business can be done remotely. The need to travel and stay overnight for a face-to-face meeting will likely be much lower. So the travel market is now, in effect, a leisure market. And that’s a structurally smaller market than airlines and hotel companies have been used to operating in.
This structural shift changes how those companies need to go about attracting, converting and retaining customers. It also means they need to think creatively about what to do with underutilized assets.