Complex Made Simple

Hotels with Covid-19 quarantined room services “key” to overcoming hospitality crisis

"Did you call Corona Room Service? The Doctor will be right with you." Welcome to Corona hospitality services

The global airline industry alone has seen $157 bn wiped off valuations One luxury hotel is offering quarantine perks such as automated check-ins and in-room medical services a la carte Re-purposing hotels as quarantine quarters is one way the battered hospitality sector could fill up some rooms

Everything has ground to halt because of COVID-19 and none more so than BEACH industries – Booking, Entertainment, Airlines, Cruises, and Hotels.

By the Visual Capitalist, stats shown over a 1 month periodAccording to the Visual Capitalist, the market’s latest storm has plunged the global travel industry into uncharted territory.

Since the S&P 500 market high on February 19, 2020, the global airline industry alone has seen $157 bn wiped off valuations across 116 publicly traded airlines.

The Baird/STR Hotel Stock Index, which serves as a benchmark for the sector’s overall health, has declined over 47% year-to-date.

CNBC reports that the global business travel sector is expected to take a revenue hit of about $820 billion, with China accounting for nearly half of the losses, as corporates curb travel plans in the wake of the coronavirus epidemic, quoting an industry body saying recently.

Airline and hotel industries, which typically are the biggest beneficiaries of corporate spending, have taken a major hit to their revenue as the virus continues to spread,

Sector job losses are in the millions.

 By Statista.comBut Hotels are fighting back, using the very same virus that is shutting down the industry to their benefit.

Read: Deeper Revenue Hit from COVID-19 on global air transport- IATA reports

Covid-19 room service

To secure reservations in this unprecedented climate, some hoteliers have gotten creative.

Le Bijou, a high-end Swiss hospitality company launched the Covid-19 Service – a customizable stay with in-room coronavirus testing, doctor visits and 24/7 nurse care.

Before the outbreak, Le Bijou catered to high-end clientele with per night stays ranging between $1373 and $3500 attracting Saudi royalty and global billionaire executives.  

After the outbreak, Le Bijou began marketing quarantine-friendly perks, such as automated check-ins and in-room medical services purchased a la carte: Coronavirus testing is available for about $860, twice-daily nurse check-in for about $3090, and the round-the-clock nurse care for about $8250.   

It wasn;t a hard sell for those who had the cash. They wanted it. Le Bijou is not the only hospitality company marketing coronavirus-related services and packages.

Across Asia, hotels are promoting self-quarantine packages promising reduced rates for 14-day quarantine stays. 

Read: Middle East Travel: 16,000 flights cancelled, $7.2 billion lost and over 818,900 jobs at risk 

Asian Corona hospitality

Hotels in the region are also availing revenue opportunities offering quarantine lodgings for travelers and workers seeking self-isolation venues.

Re-purposing hotels as quarantine quarters is one way the battered hospitality sector could fill up some rooms and get much-needed revenue during such tough times. 

Thailand’s A-One Hotels Group is rolling out a self-quarantine package at its Bangkok and Pattaya hotels.

These full-board packages are targeted at Thais or residents who wish to isolate themselves for 14 days.  

A special team will provide daily housekeeping services and help monitor the conditions of the guests, with quarantine packages priced very competitively with rates slashed by 20%. 

With Bangkok and its surrounds now in partial lockdown, Alexander Wallace, CEO of Pragma Hospitality, foresees a greater likelihood of more travelers stranded in Thailand as global travel bans multiply with each passing day while international flight capacity is drastically cut.

The hotel management company is now in the midst of designing full-board packages to be launched at its budget hotels in Thailand to cater to visitors who may not be able to return home, said Wallace.

Read: Covid-19 pushing fintech unicorns towards extinction: Future finance in doubt 

Lockdown room with a view in Capetown

Cape Town, South Africa has enforced a lockdown and the owner of the Double Tree by Hilton Hotel, Quintin Rossi is offering new quarantine units in the hotel. 

Rooms will offer a comfortable stay, complete with special hygiene hampers and all the luxuries a visitor would experience at home.

On top of this offering, a dedicated concierge service will see to the requests of guests ensuring that strict health and safety protocols are adhered to.

“We are very well equipped to handle it in a way that protects the safety and the health of everyone involved in the value proposition,” said Rossi to CapeTalk.