For roughly two years, travel, especially non-essential travel has been minimised and, in some cases, eliminated thanks to the COVID19 Pandemic. As a result, businesses that rely on casual or recreational travel have taken a big hit. The impact was so great that some had to close their doors either temporarily or permanently, putting millions out of work.
Government Support
Some hotels were able to stay afloat during the rough period, thanks to the interventions of the government. Through the councils, the government provided over 11 billion pounds to assist them. There are also plans to disburse additional restriction grants amounting to another 1.6 million pounds. Hotels have been able to use these funds to prevent full closure.
Loans
Loans from financial institutions have also helped some UK hotels to remain functional during the pandemic. Lending agencies relaxed their loan servicing demands to make funds more accessible and lower the servicing burden. These loans helped many hotels to maintain basic levels of operation as the pandemic raged on. Additionally, many of these lending agencies relaxed payment requirements by either freezing loans or implementing moratoriums that saw many hoteliers getting a well-needed break during the pandemic.
Retooling for the Pandemic Market
Others were able to find opportunities during the pandemic. Some for example, offered their facilities for use as quarantine centers. Many hotels marketed their services for private quarantining and some offered these services to the government for state managed quarantines. These opportunities helped to ensure that while leisure travel declined, hotels continued to earn revenue.
The Post Pandemic Hospitality Sector
The UK’s pandemic inspired restrictions started to ease in January of 2021. This was followed by another easing of restrictions in spring of 2021. The final adjustment which is to take effect on April 1, 2022 will see all COVID19 restrictions being removed in the UK.
As the COVID19 Pandemic slowly drifts into the world’s rear view mirror, countless businesses around the world are starting the journey to recovery. Among those businesses are the UK’s hospitality businesses. Hotels in particular are seeing a light at the end of the tunnel as business starts to return to pre-pandemic levels.
Many people, burnt out from the harrowing experiences of the pandemic are seeking ways to unwind and recharge their batteries. As a result, the industry is seeing an upturn characterized of course by record employment levels.
The pandemic had posed a significant challenge to hotels in the UK. But thanks to government intervention, help from lending agencies and retooling efforts, many have managed to survive and are now poised to capitalize on the anticipated post-pandemic business boom.
