Airbnb CEO says travel never returning to pre-COVID habits
In a recent video, Airbnb Chief Executive Officer Brian Chesky predicted travel would permanently change due to the pandemic with people seeking out thousands of smaller cities and spending more time visiting friends and family. Traditional tourism and sightseeing at top global destinations would be significantly reduced by travelers who will drive to smaller communities and fly less for business meetings. Travelers are “yearning for what was taken away from them,” Chesky said at the Reuters Next conference. “They’re not yearning to see Times Square. What they are yearning to do is to see their friends and their families they have not seen in a long time.”
U.S. Travel says yes to Biden emergency relief plan
U.S. Travel Association President and CEO Roger Dow issued the following statement on President-elect Joe Biden’s announced plan to combat the pandemic and provide direct relief to Americans:
“Accelerating the distribution of vaccines is the key to getting travel back to normal, and we applaud President-elect Biden’s emphasis on a robust federal leadership role to get as many people vaccinated as quickly as possible… Further, we are encouraged by the measures to provide additional grants and loans to small businesses in the hardest-hit industries, which include travel. The Paycheck Protection Program is set to expire in March, but the economic hardships of the pandemic will persist, so it is important that struggling businesses continue to receive aid to maintain operations and keep workers on payrolls.”
Scandic comments on market situation
In December, Scandic’s average occupancy rate was approximately 15% with continued weak demand in all markets. Ongoing rent negotiations have thus far led to agreements for rent reductions and offers from landlords totaling approximately SEK850 million (US$102 million). Demand has continued to be weak in all markets and has been impacted by stricter restrictions from authorities due to COVID-19. About half of Scandic’s hotels were closed during the Christmas and New Year’s holiday, which had a certain negative effect on occupancy in December and at the beginning of January. According to the Benchmarking Alliance, market RevPAR dropped between 59 and 72% during the fourth quarter in the Nordic countries compared with the corresponding period during the previous year.