Hospitality COVID-19 period
Today hotels are experiencing serious problems due to the decrease in tourist flow. This is due to the high level of operating costs in this business: at 60 percent utilization, they account for at least 40% of revenue. With significantly lower occupancy rates this year, many hotels are unable to cover their costs, and those who can do it are not making a profit. And some, like the legendary Hotel Martinez in Cannes, are closing. A distinctive feature of the current state of the market from previous crises is that earlier, with the fall of the ruble exchange rate, the cost of living increased along with the exchange rate calculated for foreign tourists, but today, when foreigners have practically stopped coming, rates are completely dependent on ruble clients and do not react to foreign currency fluctuations, continuing the downward trend.