Two thirds of hotels have reduced their expenses by headcount optimization, 27% of respondents have implemented alternative services and rented rooms as offices, according to the study entitled “Ukraine Hotel Market & COVID-19 Impact” conducted by the Ukrainian Hotel & Resort Association (UHRA) together with international tourism experts from Horwath HTL.
“Two-thirds of hotels have decided to reduce prices – an instinctive (yet not necessarily efficient) step to boost occupancy. One third of respondents introduced digital & marketing tools. Apparently, before the pandemic was not considered critical. Some 27% of respondents have introduced alternative services, i.e., co-working, renting rooms as offices, etc,” UHRA International Relations Director Ivan Lun told Interfax-Ukraine.
He added that some respondents (7%) decided to change the function of some areas, i.e. for a gambling facility.
Lun said that vast majority of respondents (93%) confirmed an overall drop in their revenues, and more than 60% of hotels had revenues shrink by more than 40%.
“Only 4% of hotels showed an increase in revenues, and 3% reported that it remained at the level of 2019. Hoteliers who reported growing revenues were all located in the countryside,” the expert said.
Despite a difficult year for the industry, only 2% reported that they are actively seeking exit by selling their hotels and over 90% responded that they will keep operating even with certain limitations.
According to Lun, almost a quarter of hoteliers (23%) expect their performance to return to 2019 levels in 2021; 57% – in 2022 and only slightly less than 20% – in 2023 or later.
Some 122 respondents have participated in the survey, with an average size of 72 rooms per property. Two thirds of the responses came from urban, while 34% from rural locations.