Coronavirus Travel News

The conventional wisdom is that hotel brands are a safe harbor for owners during a storm. But has that been the case during Covid-19? Recent data suggests that the reality is far more nuanced.

The competition is brutal when it comes to making new brand deals in a downturn. Smaller companies have to be nimble and appeal in franchise negotiations with lower-cost terms to win out against the global giants.

Few are surprised that JetBlue is pulling back on its initial London schedule as U.S.-UK travel restrictions persist. But that's a small concern for the airline that faces big expenses related to its new alliance with American Airlines and a still uncertain recovery outlook.

Major hotel companies are massive enough. Mergers and acquisitions departments need to think more about smaller, strategic deals rather than mega-takeovers that take tens of billions of dollars and years to integrate companies.

Profitability is possible, but there won’t be massive financial windfalls to report this week. Investors will still expect at least some sign the leisure-led recovery is benefitting these global hotel companies — especially amid the rise of new variants.

The uncertainties of the pandemic have sucker-punched the airline industry in more ways than one. Gaining the public's trust through reliability, transparency, and inclusiveness will go a long way towards improving an airline's reputation and brand value.