It is usually the peak time of the year when Chardham yatra used to be carried in full swing every year only before the pandemic hit the world. People from all over the Globe and India Specific continued this pilgrim’s journey to Uttarakhand with their families. There used to be scarcity of accommodation for the crowd until this year where nowhere people could be seen. But today the situation is completely reverse, the rooms are vacant and cheaper than before but no one is willing to travel.
Dayara Resort is one such Hotel and Resort in Dayara Bugyal, Uttarkashi which used to be the favorite destination for the pilgrim but this year the business is shattered and both hotel and staff are suffering.
Covid-19 and its Impact
The COVID-19 is also called coronavirus disease which is caused by the newly identified corona strain of a virus known as the novel coronavirus. The virus originated in the Chinese city of Wuhan and the first case was reported in the early December month of 2019. Later it spread across the world by the late month of January and made the United States and Italy the worst-hit nations in the initial months of the spread.
This forced the Governments of the various countries to lock down as it was the only option to curb the spread of the disease because the infection was transmitted via humans and studies showed that it may take up to 14 days for an infected person to show symptoms. Scientists and medical experts said that the possible vaccine may be available by the late summer of 2021. In India, the first lockdown was announced in the last week of March 2020.
The lockdown resulted in the economic crisis due to the suspension of all activities, people were advised to stay at home and restrict unnecessary movement until the lockdown is lifted. Industries began to go into losses after a few weeks of the announcement of the lockdown, various sectors witnessed a decline in the work output and revenue generation, among them hospitality, transport, tourism, and entertainment industries were worst hit. People working under unorganized sectors had pay cuts and many were losing their jobs.
The hospitality industry is the backbone of the tourism sector and both are interlinked. Even the transportation sector is dependent on that up to some extent. COVID-19 has led to the global crisis hitting the hospitality industry worse than the previous SARS and the financial crisis in 2008. Hotels and resorts are closed and most of them are not able to generate sufficient revenue. Few economic researchers say that the hospitality industry in the United States may recover by 2023 and maybe later.
Hotel Based Startups are witnessing the worst phase
One of the leading internet startups in the hospitality industry named Oyo Rooms is now facing a prolonged battle to save its business from collapse. Over the past few months, the company is conserving the cash by cutting down the additional expenses, and also the payment to the hotel supplier will now be based on customer bookings
Oyo has also put its thousands of employees on temporary leave in some of its international market. The founder of the Oyo Rooms Mr. Ritesh Agarwal has given up his salary for the rest of the year while his senior members have taken the pay cuts of 25 - 50 %. Oyo Rooms have 10,000 employees in India alone and currently, they are not in a plan to lay off their employees. To survive in the industry Oyo needs to reduce cost by keeping only profitable properties and raising more funds urgently like Reliance Industries Limited
People are hoping for the possible vaccine for the COVID-19 by the summer end of the next year, but it may take more time for the businesses to recover their losses
People are not stepping out of their places, most of the work are being conducted from home. No more conferences and seminars, Marriages, Parties are taking places in Hotels which has made their business fall deep down
It’s the time of the year when results are declared and students usually use to move out of their native places to different big cities for higher education, which brought business to Hotels Since before finding a proper accommodation in a PG or renting a room they used to stay in a hotel which is not the scenario this year