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What is the effect of coronavirus on travel industry specially for USA traveller?

The pandemic of COVID-19 has caused devastation throughout the globe. Having originated in the Wuhan City of China, the novel Coronavirus has created a panic situation among the people worldwide. Each and every country has been affected by COVID-19 and is in great turmoil. The death toll that stands at 234,000 as of May 01, 2020, further adds to the grave situation. The horrifying statistics depict the seriousness of the situation. Apart from affecting the lives of the people, the pandemic has led to the loss of revenues of a number of industries.

The Effect of Coronavirus on the Travel Industry

Among all the industries, the travel industry is being affected the most. COVID-19 has literally brought the travel industry to a standstill. The travel industry that witnesses nearly a billion trips a year has come to a complete halt due to the rapid spreading of Coronavirus. As social distancing and lockdowns are being used as tools to bring the situation under control, the travel industry continues to suffer. With people staying back at their homes, taking up work from home, and canceling their travel plans, the travel industry is largely affected.

Coming to the travel industry of the United States of America, the losses are snowballing. According to the US Travel Association, the collapse in the travel industry of the USA will lead to a 910 billion dollar hit to the country’s economy. According to the data recorded by Tourism Economics, the travel and tourism industry of the US will potentially suffer a loss of about 24 billion dollars in foreign spending. The crisis of Coronavirus is affecting the industry really hard and pretty fast. The airlines and hotels are the ones that suffer the immediate repercussions of the pandemic.

Impact of Coronavirus on the Aviation Industry

Since the very beginning of 2020, many countries started shutting down their borders that led to the travel restrictions. The aviation industry faces a direct impact of the Coronavirus outbreak. In the month of March 2020, American Airlines have reduced 10% of its international flights. The loss of revenues of the airlines across the globe is forecasted to be 252 bn USD. Owing to the lockdowns, the aviation industry reports a huge number of flight cancellations.

As of May 21, 2020, the number of flight cancellations surpassed the number of new bookings in the US aviation industry. It is even a worse situation than that of 9/11, the US Treasury Secretary has said. Moreover, the airlines have to cancel the booking and refund the amounts to the customers, thereby putting them under more stress. In the wake of the novel Coronavirus, the employee furloughs, capacity cuts, and cash constraints in the aviation industry are domination the news.

By the month of June, the American airlines plan to retire the remaining 767-300 ERs. Moreover, it is not likely to back-fill the capacity any time soon. The network of the US airlines expects to see a change after the pandemic ends. The decisions that the US airlines will make in the post 6-12 months of the pandemic will shape the US airline network’s future.

Impact of Coronavirus on the Hospitality Industry

Along with the aviation industry, the hospitality industry around the globe is suffering much loss due to the Coronavirus pandemic. The COVID-19 is having a severe economic impact on the hotel sector. According to the American Hotel and Lodging Association, about 45% of the jobs in the hotels are likely to be eliminated. Keeping in view the present status, a 30% drop in the hotel occupancy can be predicted. If such a case happens, the hotels will experience a loss of about 4 million jobs.

Owing to the current situation of travel demand, the hotel industry will be losing nearly 1.4 billion dollars of revenue every week. The economic impact on the hospitality industry due to the novel Coronavirus will ultimately affect the United States economy. According to the reports of the World Street Journal, Marriot Hotels have even started furloughing their employees. Urgent actions are necessary to address the situation and save the hotels from incurring huge losses.

The Near Future

As the case of the Coronavirus is still on the rise, the future of the travel industry remains still uncertain. A specific solution needs to be crafted in order to bring the grave situation under control. The broad shutdowns owing to the rapid spread of the Coronavirus are affecting the travel and hospitality industry really hard. Government aids can help in preventing the disruption of various industries. Still, there is a positive hope for the bright future of the travel and aviation industry. As the world recovers from the shock of COVID-19, the demand for these industries is likely to increase.

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Coronavirus effects on Travelling in the USA

The present pandemic situation has brought a halt to the world. While many countries are going through a lockdown period, airports have been closed and travel has been restricted by different countries as the COVID-19 continues to claim life. Over millions have been infected globally, while thousands have already succumbed to the deadly virus. Social distancing is becoming the new normal. As we see a spike in new cases across the world, it is likely that there will be international travel restriction for some time now.

If you’re planning to travel to the USA, here is some important information to help you make an informed decision.

  1. If you’re stranded in India and wanted to return to the US, now is the time to do so says the US Embassy and Consulates in India. A series of flights will carry back US citizens to the US this week. So, if you’re a US citizen who wishes to return to the US, now is the right time to leverage this opportunity.
  2. If you’re wondering if this is a good time to book your hotel stay in the US for your upcoming travel, then it would be difficult to predict now. With travel restriction, travel bans, and cancellation of events, it is rather difficult to assume that things will normalize anytime soon.
  3. If your travel plan has got canceled for the pandemic situation and if you’re feeling miserable about it, start planning for the next vacation. You don’t need to finalize the travel dates. You can do that once this crisis is over. But meanwhile, planning for the next holiday will make you feel better and also keep you occupied for some time.
  4. Now that you have plenty of time to think, jot down all the places that you want to see, which hotels to book for an experiential stay, list down restaurants to eat, which are the best tour operators and travel advisers to help you plan your next travel. With so much time in hand, you can chalk out a beautiful and customized itinerary. Discuss with your family members so that everyone can participate and contribute to the next family holiday plan.
  5. Now is also a good time to collect miles which will come handy when you do your actual booking. Plus, it becomes a lot easier when you cancel a ticket bought with miles than an actually paid one as only a few airlines offer free or inexpensive cancellation charges to its elite members.
  6. Hotels are now more than ever flexibles with their booking policies. As we are living through a history of uncertainty, the travel industry being hit worst, hotels and tour operators are becoming more and more flexibles. Rental homes and shared apartments through Airbnb had been a popular choice among travelers across the globe until now. But, with the recent situation where social distancing is the only way to stay safe, renting Airbnb apartments is now questionable. However, if the situation improves, Airbnb can be a good accommodation option for your travel. As reported in USA Today, guests can book hotels last minute without paying penalty. So, you can go ahead and make your booking by taking the good deals that are being offered by some of the top hotels at the moment because of the current situation.
  7. Similarly, airlines are also offering lots of flexibility to their patrons. For example, the new policy announced by United, says that all the tickets that were booked between March 3 and March 31, 2020, can be changed for free for a future date. This could be for a ticket of equal or lesser value for the next 12 months from the original travel date. The airlines have also announced to waive change fees for tickets bought on or before March 2 that had travel dates between March 9 and April 30. On the other hand, American Airlines has mentioned that it will waive change fees for all bookings that were done through April 30 if you book a ticket on or before December 31. With this ticket, you can travel anytime between the next 12 months. Their deal is for both awards and paid tickets.
Some other important pointers to note:

Consider purchasing trip insurance if you have not thought about it before. This comes handy, especially for expensive trips. Given the present condition of uncertainty, you won’t be caught off guard when you have trip insurance with you.

The state by state travel policy is shrinking every day, so ensure to check the travel regulation for the particular state before you make an arrangement.

Coronavirus, has affected by the travel industry and traveling in the USA, has come to a halt. But remember, this too shall pass soon. So, don’t feel low, and make use of the time to plan your next holiday so that you have all the information at the tip of your finger when the situation improves and you don’t have to keep yourself locked up in the house. Hang in there till then and be safe!