Sector report Hospitality in the Covid-19 era


The hospitality sector covers everything from bars, coffee shops, contract catering, hotels, nightclubs, visitor attractions and other leisure venues. The sector is a major contributor to the UK economy, employing 2.9 million people and generating £130bn in economic activity, while paying £38bn in taxation to fund important local and national services. Hospitality is the 3rd largest private sector employer in the UK; dou- ble the size of financial services and bigger than automotive, pharmaceuticals and aerospace combined. We take a look at the impact of COVID-19 and AV innovations that could improve chances of hospitality venues re-opening.


Decisions being taken to shut down hotels, restaurants, theme parks, cinemas, not to mention the entire disruptive effect of the travel ecosystem, all have a significant impact on worldwide tourism. Opera- tors and investors are trying to mitigate the cash and working capital issues and stay in close contact with their stakeholders. Hospitality has certainly pulled its weight throughout the pan- demic, for example by making their venues available for hos- pital beds and hospital em- ployees. The situation we are in also brings new business models and opportunities, in defining for instance new de- livery concepts, human capital sharing platforms, initiatives in promoting the “staycation or holistay concept” and the use of the less productive time to work on activities that were nor- mally pushed forward like asset counts, security plans, defining standard operating procedures, social media plans etc. Despite unfavourable compar- isons by government between reopening pubs and schools, generally the reopening of hos- pitality great news. There are over 207,000 eating venues in England, and around 25% of these are fast-food outlets. Aside from the social benefits,


welcome news. in the middle of last month, that further ele- ments of the hospitality sector in England would be permitted to reopen. Indoor theatres, mu- sic and performance venues will be able to reopen with socially distanced audienc- es. Wedding receptions in the form of a sit-down meal in a COVID-secure location for up to 30 guests were also be permit- ted. Indoor soft play, bowling alleys, skating rinks, spas and casinos were also permitted to reopen.


The trade body UKHospital- ity reiterated its concern over the lack of a plan for the re- opening of nightclubs, but it welcomed the launch of Hotel Support Programme scheme. UKHospitality Executive Direc- tor for Scotland Willie Macleod said: “The opening of the Hotel Support Programme is a wel- come boost for the sector and a positive sign of intent from the Scottish Government. The Scottish Government consult- ed closely with UKHospitality on the design of the scheme to ensure it focuses on the busi- nesses that need help the most and to encourage as wide as possible participation.


“Rents are still a huge issue


for many businesses, notably casual dining, and we are going


lic funding schemes. Accounts Deloitte recommend a number of measures to preserve the in- tegrity of hospitality business- es. These are:


• Draw up an extended cash flow forecast for the next six months. Be realistic and have Base and Downside scenari- os to understand critical cash points and any breaches of lending covenants.


• For operators: manage your payments to suppliers. •


Minimize all discretionary


operational and capital expen- diture. Reconsider or postpone maintenance and other capital expenditure where possible to conserve cash.


• Put in place an advanced rev- enue management system and pricing models to respond to market developments quickly. • Talk to your operators to dis- cuss their expectations about the impact on performance. • For operators: assess the impact on Occupancy and RevPAR and create a plan to mitigate risk.


• Understand if the loss will be permanent or just delayed. For investors, understand the im- pact on the operating fees.


Total impact


Irish company Kastus have launched a new range of commercial an- timicrobial and antiviral screen protectors as businesses worldwide seek for a proven solution to help better protect their touchscreen devices against harmful bacteria and viruses.


there are also significant pluses to the nation. According to the British Beer and Pub Associa- tion, around 8.5 billion pints of beer were sold, with 7.4 billion 175ml glasses of wine, and 1.2 billion pints of cider in the UK in 2018. Beer has 54 pence of duty per pint. There are around 2530 breweries in the UK. The UK industry paid around £41bn in tax in 2015; around half of this is VAT. The tax paid in 2014 was around £7bn higher than that paid in 2010. Overseas visitor spending in the UK (not including internation- al students) is reckoned to be around £22bn. The UK tourist industry is the 8th largest tour- ism destination in the world. In 2014 there were around 30 million overseas visitors to the UK.


Slackening the lockdown


to need both fiscal and non-fis- cal support to get through the crisis, probably in the form of a grant combined with a further extension of the moratorium on lease irritation. The business rates holiday and VAT cut both need to be extended and busi- nesses will need help if they are expected to hire and retain workers following the end of the furlough arrangement for staff at the end of October”. “Additionally, there are still sections of the hospitality sec- tor, such as wedding venues, nightclubs, music venues and event centres still unable to open. We need a clear roadmap for the reopening of these and support where they are unable to reopen.


Accounting recommenda- tions


Given the importance of the sector to the economy it was P18 AV News September 2020


For those regions of the UK and sectors within hospitality un- able to take advantage of pub-


Naturally, advice from the likes of Deloitte, will not be welcome by the AV channel - particularly when the full economic impact of the decline in hospitality is considered. The total economic impact of the hospitality indus- try. Adding together the direct, indirect and induced impacts described above gives the total economic contribution of the hospitality industry. The total gross value-added contribution to GDP from the hospitality industry is estimated to have been £143 billion in 2014 [Ox- ford Economics]. This is equiv- alent to ten per cent of UK GDP. For every £1 million the hospitality industry contributes to GDP itself, it creates another £1.5 million elsewhere in the UK economy.


Ironic, then, when a num- ber of AV innovations have the potential to open up sectors within


the hospitality sector.


For example, keeping staff and visitors safe is undoubtedly the priority in an industry which supported a total of 4.6 million jobs in 2014, through either its own activities, supply-chain spending, or the induced ex- penditure of employees and those in its supply chain. This equates to 14 per cent of total employment in the UK. For ev- ery ten direct jobs the industry creates another six are created elsewhere in the UK economy. For


example, hotel indus-


try finds itself scrambling to inspire consumer confidence while also working hard to safeguard both guests and


Protocols like mask-wearing, hand-sanitizing and social distancing are being accept- ed as new norms, and tactics for keeping people apart while continuing to conduct business (i.e., “touch-free” or “contact- less” solutions) are the order of the day.


From replacing tangible restaurant menus and paper in- room compendiums with scan- nable QR codes to contactless hotel check-in capabilities, mobile room keys, touchless payments, and in-app ordering


“Despite the downside this crisis


may bring, it will most probably also provide opportunities. We have some dry powder available.”


employees against COVID-19. The virus has unquestionably accelerated the infusion of new technologies and applications into hotel operations. Tech fea- tures that might have originally been intended for introduction as novelties or extra conve- niences are suddenly becom- ing necessities in an era where some people are wary of even stepping outside their doors.


The role of AV


and appointments-booking, al- most every aspect of the hos- pitality experience can now be accessed through guests’ own mobile devices, provided that hotels have adopted the right software. Customer-facing tech tools are being deployed to provide remote access to front-desk, concierge and customer-service functions through chatbots or live-chats with on-property staff, putting immediate as- sistance straight into guests’ hands without the need to come face-to-face with hotel employees.


Cloud-based IoT (Internet of Things) software also can be just as essential to run- ning back-of-house functions and streamline operational complexities like coordinating housekeeping systems, assign- ing staff duties and confirming compliance with newly en- hanced cleanliness standards. Besides employing mobile and self-service technologies to help personalize guest stays


and provide cost-effective man- agement of operations, amid COVID-19, incorporating this kind of cutting-edge tech has quickly become paramount for hotels just to stay in business. In the Sitel Group’s recent report: ‘Customer Experience Trends in a Post-COVID-19 World’, CMO Martin Wilkin- son-Brown wrote: “As we move into the ‘new normal’ and ho- tels reopen for business, the expectation for customer expe- rience is higher than ever.” He foresees that moving forward, guests will expect enhanced tools like live-agent or AI-pow- ered support channels, and per- sonalized communications, not to mention heightened hygiene standards. “Hotels that cater to these consumers' needs will win brand loyalty as we em- brace the new normal and for the long term,” he predicts. Below, we look at some of the innovations that might deliver on these requirements without enhancing the risks of infection among staff or quests.


COVID-related AV technologies FaceMe from Cyberlink


‘FaceMe’ product from Cy- berlink – said to be one of the world’s most accurate fa- cial-recognition engines - has added new features that are designed specifically to help businesses in reopening amid COVID-19 conditions. These include mask-detection, which can still identify individuals while they’re wearing masks, and help alert management when someone enters the premises without a mask or is wearing it improperly; and thermal-camera integration, as distanced temperature-taking


and temperature measurement into one platform. The solution is designed for a range of facili- ties, many of which are consid- ered to be on the frontline in the battle against COVID-19, including commercial buildings and factory plants, retail store- fronts, restaurants and hotels, as well as institutional loca- tions such as hospitals, schools and airports. With many facilities reopen- ing, often they require individ- uals to pass through monitored checkpoints prior to entry to ensure they are wearing a mask


if they potentially have a fever. If an individual is not wearing a mask, not wearing a mask properly, or has an unusually high temperature, the system automatically notifies key per- sonnel for further investiga- tion - creating a cost-effective, non-intrusive solution for more efficient


health screening as


the globe battles to contain the coronavirus.


Studies have shown that mask wearing substantially reduces the transmission of COVID-19, but face masks render most identity verifica-


‘FaceMe’ product from Cyberlink – said to be one of the world’s most accurate facial-recognition engines - has added new features that are designed specifically to help businesses in reopening amid COVID-19 conditions.


protocols are fast becoming a commonly accepted practice in the post-pandemic era. In detail, the FaceMe Health software solution integrates mask detection, authentication


and not running a fever. Fa- ceMe Health automates what is typically a cumbersome pro- cess, seamlessly screening in- dividuals to verify their identity, if they are wearing a mask and


tion systems useless. FaceMe Health is designed to perform identity authentication with up to 95 percent accuracy, even when a face is obscured with a mask and regardless of mask


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24