Look at Post-Pandemic Hospitality Sector

Karo Kankus 25.09.2023

We all know of the serious blow hospitality field took due to the global Covid19 pandemic, but how are things now that restrictions have been lifted? This text takes a look at the situation in both China and Finland. Potential solutions for the future are also offered at the latter part of text.

According to the member survey of Finnish Hospitality Association MaRa ry. this year’s situation in Finlad among the hospitality enterprises has been better than in the summer(?) of 2019 and reasonably good. However, due to other factors it is not expected to remain so during Autumn 2023 or in the near future. These include the plans of the current cabinet to raise the sales tax by 10 % inside the current 14%, as well as world situation, mainly the effects of the Ukraine-Russia War. As well as the still continuing deficit of Japanese and Chinese guests in Finnish hotels. In addition, the expenses have been rising since 2021.

Situation is not hopeless, even if it is not as good as it could be. In Chinese mainland the situation is similarly that of recovery, especially in non-first-tier cities (Beijing, Shanghai, Guangzhou & Shenzhen). The market has partly recovered better outside these cities, due to domestic travel and stays in budget hotels in recent years. According to Daxue Consulting there is still room for Chinese hotel market to grow and there will be more domestic demand for higher than mid-level hotel accommodations in the future. Hotels in South China’s Sanya have been doing particularly well, ever since the early pandemic.

So, at least by these accounts the situation in China is looking more hopeful. But if there is room to expand that will of course require some work. Additionally, the foreign brands still have a significant share in the China’s hospitality market.

As for how to not only maintain the hospitality business, but also to make it flourish, the most obvious offered solution is the maintaining of high-quality service. Perhaps in Finland a page could be taken from China’s hospitality book in this one?

In order to for such high-quality service to be maintained, requires maintaining the high-quality of staff in hotels and other enterprises. Which means attracting and hiring new and motivated employees is of essence. This is something where LinkedTour China and our forthcoming application are well positioned to assist in, when the employers discover the application.

Offering guests new experiences, now that the travel is becoming more common again, is another potential draw. They could involve putting emphasis on local specialities, such as related to (food) culture or nearby landscapes.

But regardless of whether such new experiences or services are offered on a scale different from before they need to be communicated and marketed to potential guests and visitors. Such improvements are of no use if people remain ignorant of their existence and if that happens they cannot be impressed by the quality of service either.

Sources:
China’s hotel market: hitting a record high in construction rates as it rebounds from the pandemic. ByTong Zhu. Daxue Consulting URL: https://daxueconsulting.com/hotel-market-china/

Matkailu- ja ravintolayritysten kesä kohtuullinen – kustannukset painavat raskaasti. By The FinnishHospitality Association MaRa ry. URL: https://www.mara.fi/ajankohtaista/tiedotteet/matkailu-jaravintolayritysten-kesa-kohtuullinen-kustannukset-painavat-raskaasti

Post-Pandemic Hospitality Trends & Economics in China. By Kimberly Yoong. EHL Insights. URL:
https://hospitalityinsights.ehl.edu/hospitality-trends-economics-china