Coronavirus is having a tremendous impact on the travel industry. Apart from ai travel bookings being slowed by 19.3%, events are being canceled, and hotels are getting hit hard. How long the coronavirus scare will last is unknown, but there are reports of 9 dead in the Seattle area, and exposure around the nation.
Let’s take a closer look at the massive economic impact this pandemic is having on the travel industry.
Flights Slowed Across the World
International travel has stalled, putting pressure on the already struggling air travel industry. In the wake of the grounded 737 Max, an extremely popular plane, and coronavirus scares, it’s believed that some airlines may not survive. The impact of the coronavirus depends on its longevity, and presently there’s no way of telling how long it will take until the situation is under control.
In the meantime, many countries are calling for a stop to unnecessary global travel, and borders are being tightened. To slow the spread of coronavirus, travelers are being asked to avoid large gatherings, and many events that they might travel to — such as large conferences and seminars — are being canceled.
$30 Billion Loss May Be Felt
One middle eastern airline reported $100 million in losses due to the coronavirus, and it’s believed that a $30 billion loss may be tallied up among the aviation industry globally. Airlines experiencing the largest declines are the ones that primarily fly to the east, as China is still considered to be the major vector of coronavirus. The WHO has updated its recommendations for travel and has restricted many areas to necessary travel only.
The flight industry has already been faltering somewhat, not only due to the grounded 737 Max, but also due to a general reduction in travel spending. As many throughout the world experience more difficult economic times, both recreational and business-related travel decreases.
A Path to Recovery Over the Next Year
It’s believed that it may take a year or more for the air travel industry to fully recover from the coronavirus. Companies and individuals will need to feel comfortable traveling again, and there will be a ripple effect to losses posted due to the coronavirus spread. For China and other badly affected regions, the local tourism and tourist-based economy may not recover for much longer.
For now, the WHO has the latest insights on the areas that are truly dangerous to travel to, and will be updating these classifications as needed.
The coronavirus is very similar to the flu, but there are elements of it that make it more dangerous. It can pass undetected from person to person quite easily, and may not be detected until an individual has already fallen ill. And while its fatality rate isn’t tremendous, it’s still greater than many common flus and colds. Travelers are right to be wary of the coronavirus as it spreads, and to reduce the amount of travel they engage in.
