Hotels & Hospitality Supplementary Report
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Tracking Consumer Sentiment on the Impact of COVID-19 Hotels & Hospitality: Supplementary Report 6th May 2020: Week 6 (GBR), Week 2 (USA) Introduction At BVA BDRC and Alligator Digital we are tracking consumer reaction to the COVID- If you want us to look at specific topics, either for your own private consumption or 19 crisis to support our clients and followers. It’s Been a fascinating activity for all inclusion in a main or sector report please do get in touch. The core report remains of us involved in the project. Now in Week 6, we are starting to see the emergence free, while for specific inclusion we need a small contriBution towards the of longitudinal trends and patterns. additional costs. This supplementary report Builds on the main report from week 6, released on You can sign up for our free reports at https://www.Bva- Friday 1st May, and focuses more on the hospitality sector in a little more detail. bdrc.com/products/tracking-consumer-sentiment-on-the-impact-of-covid-19/ This includes slightly deeper consideration of a couple of questions on the main report, as well as two areas that particularly interested us. Stay safe! This time, we look at: • The Word on the Street? What was the impact on brand reputation of a high-profile PR own goal scored by a large UK chain? • Does Loyalty Pay? What is the point of a frequency programme? Might Gift Vouchers Be a cash generation option? James Bland Director, Head of Hotels We also have a summary of the week 6 report By Dr Cris Tarrant, BVA BDRC CEO and BVA BDRC some insights from our US Tracker regarding what US travellers will need to see in place Before they’ll again visit hotels or homestay accommodation. Contents Page No. Hospitality Sector Summary 04 A Dr Cris Tarrant Recap: 05-09 B1 The mood of the nation Recap: 10-13 B2 Holidays and accommodation Further Analysis: 15-17 C When respondents feel comfortaBle planning and Booking holidays or hotels and what cleanliness standards will Be needed The Word on the Street 20-29 D A look at how recent media coverage could have impacted online Brand reputation Does Loyalty Pay? 30-34 E Considering the role that loyalty programmes and gift vouchers may have to pay F Appendix 35-37 Hospitality Sector Summary: Week 6 Summary of Great Britain Week 6 report by Dr Cris Tarrant – CEO BVA BDRC The mood of the nation has stabilized as we are in a ‘wait and see’ position about the easing of the lockdown. There is a real sense the country is getting through this crisis but, expectations for when we will travel on holiday and stay in hotels are again being pushed back as the country absorbs the realisation that social distancing regulations are likely to be in force for many months to come. Confidence in HM Government’s handling of the crisis remains supportive by a ratio of While thoughts are turning to when life will return to normal, the time frame for this is nearly 2:1, with once again almost two thirds confident and rather over a third not being extended and any expectations of a swift recovery are receding. Only 28% of confident, suggesting toleration with the lockdown is still largely holding consumers, down 5 points in a week, think this will be by August, while the proportion thinking this will not be until 2021 or later has been rising from just 14% three weeks ago to 32% currently. Increasingly the assumption is that recovery is going to be a long Within the country there is a real sense that we are getting through the peak of the slog – there is not going to be a light switch moment covid-19 disease with another large shift in perception this week. Now just 29% think the worst is still to come in the coronavirus crisis. Approaching half (46%) think things will stay the same for now, sensing we are still at a plateau phase of the curve, but Yet again fewer people are planning to proceed with current bookings and more are already 24%, up from 18% a week ago, believe the worst has now passed saying they have been cancelled and they have not committed to re-booking. Week by week the prospects for the summer tourism season are softening, definitely for international travel, and now even for domestic travel The position in the UK is now in contrast to France, where the trend towards more positive perceptions has been halted and on some metrics even reversed. Are we being overly optimistic in the UK about how soon we will be through this? Perhaps in the absence of government milestones for lockdown release we are assuming too much Reflecting concerns over their own health and the need for social distancing, it is rural about the speed of progress against the disease? With reference to the longer term locations, coast or countryside, with low volumes of people that are the much the most impact, hopes of this being a V-shaped event increasingly are giving way to the appealing for a domestic summer holiday this year. prospect of a U-shaped or even a more protracted bath-shaped recovery In similar vein, expectations of when consumers will make a hotel booking again once more continue to be pushed out. With holiday and hotel planning and booking But with reference to the longer term impact, hopes of this being a V-shaped event horizons on average being around 6 months from now, we continue to foresee increasingly are giving way to the prospect of a U-shaped or even a more protracted considerable demand from UK consumers for winter sun holidays in the 2020/21 bath-shaped recovery season With the prospect of ‘stay local’ becoming a likely post-lockdown theme we would recommend hotels within the UK think of promoting themselves within their own local areas at this time – after all it will be the fact of getting away from home at all as much as where this happens that will be appealing for many consumers. This can also be coupled with a message about staying locally to support a local hospitality business RECAP: The mood of the nation (GBR) Slides from the Week 6 report For the first time in 4 weeks there is no improvement in the UK’s average mood – if anything it edges downwards, perhaps reflecting the fact that we are now in a holding position ahead of the lifting of lockdown. 27-28 April Average mood week-on-week 27-28 April 2020 14 Average mood 6.7 6.6 58% 6.5 6.6 45 7-10 ratings 6.1 6 6.2 27 42% 0-6 ratings 15 23-24 30-31 6-7 April 14-15 April 20-22 April 27-28 April March March 9-10 ratings 7-8 ratings 5-6 ratings 0-4 ratings Q5: How would you rate, between 0 and 10, your mood today? (%) For the 5th consecutive week, we are significantly more optimistic aBout the outlook: almost as many people now say that the worst has passed as those who feel the worst is still to come. For several weeks, our trend in the UK appeared to mirror that which our BVA colleagues recorded for France – just a few days behind. However, the trend in France has stalled in recent days, with the % believing that the worst is still to come climBing to just over half the population again. The worst is still to come 87 COVID 19 situation in FranCe – French respondents* 81 Things are going to stay the same 78 The worst has passed 84 81 79 78 77 60 71 65 55 54 44 46 51 51 51 51 53 52 47 48 49 44 43 38 40 41 39 37 34 37 35 36 34 29 29 32 32 33 30 27 18 20 15 16 16 17 18 19 16 16 17 13 11 24 13 13 12 14 14 12 14 15 16 14 14 5 6 9 9 1 3 3 4 4 4 23-24 Mar 30-31 Mar 6-7 Apr 14-15 Apr 20-22 Apr 27-28 Apr 23-Mar25-Mar27-Mar29-Mar31-Mar 02-Apr 04-Apr 06-Apr 08-Apr 10-Apr 12-Apr 14-Apr 16-Apr 18-Apr 20-Apr 22-Apr 24-Apr 26-Apr 28-Apr 30-Apr Q7: Regarding the situation of Coronavirus in the UK and the way it is going to change in the coming month, which of the following best describes your opinion? (%) *BVA daily tracKer on how the situation is changing in France. More info, contact Adélaïde ZULFIKARPASIC ([email protected]) From week to week, we see only modest shifts in financial mindsets but the proportion of us who consider themselves to have been impacted to some extent climBs to a new high of 45%. 20-28 April Personal feeling about own current situation – segments The worst is Things are going The worst still to come to stay the same has passed I’m one of the lucky ones – I’m actually better off 7 I’m one of the lucky ones – I’m than before 7 5% 8% 9% actually Better off than Before 7 I’m alrightI’m alright– the coronavirus– the coronavirus pandemic has not 29 really affected me and I’m pretty confident that it pandemic has not really affected me 34 26% 34% 31% won’t 31 and I’m pretty confident that it won’t 20 I’m cautiousI’m just- I’mnaturally just naturally cautious with money 19 14% 16% 22% cautious with money 17 Both - I’m naturally cautious with money but I’ve become even more cautious during the 29 I’m cautious - impacted 26 coronavirus pandemic + I’m not naturally cautious 29 30% 30% 27% with money, although I have become cautious … I’ve been hit hard – I’ve got no option but to really cut back on my spending + Although I’ve been hit 15 6-15 April I’ve Been hit hard 13 hard and perhaps should cut back, I’d rather carry 16 26% 12% 10% on20-22 spending April today and let tomorrow look af 27-28 April Q17: If you had to choose, which ONE of the following statements would best describe your feelings about your own situation, right now? Q18: Some people are just naturally cautious with money.