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POST PANDEMIC HOSPITALITY RECOVERY
Post-Pandemic Hospitality Recovery -A Study of the Chinese Luxury Industry
Name
Institution
Author Note
1
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Literature Review
The literature review’s first chapter objective is to sift through the current literature on the
nature of the Chinese hospitality business, how it was affected by the pandemic, and how the
industry recovered post-pandemic. Additionally, the literature review chapter introduces the
Chinese hotel sector and details the incidents that occurred during the pandemic’s effects on the
industry and how it recovered from the pandemic’s severe repercussions.
2.1 Introduction
Chinese hotels have taken a major hit since COVID-19 broke out, and the literature study
in the first section aims to find out why the COVID-19 pandemic happened and what can be
done to avoid it happening again. In the face of a weakening local economy and global economic
uncertainties, the hotel industry in Greater China had a dismal year in 2019.
2.2 The Chinese Hotel Sector
2.2.1 The State Chinese Hotel Sector
The Chinese hotel industry is comprised of luxury goods, which include the products and
services provided by the hotel industry (Gil & Yan, 2020). Similar to assertions made by Gil and
Yan (2020), Yang et al.(2021) classified the hotel industry in China as a luxury sector that
contributes significantly to the country’s revenue. However, Yang et al.(2021) note a
considerable drop in spending per customer and lodging visits during the COVID-19 pandemic,
as opposed to the report documented by Gil and Yan (2020). Specifically, China’s hotel business
has grown at a breakneck pace, ranking third internationally (Gil & Yan, 2013). Hu et al.(2020)
affirm the latter by noting that the Chinese hotel supply exploded and caught up with travel
demand in the cheap hotel sector. Therefore, the Chinese hotel sector remains one of the largest
globally.
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According to Gallen (2020), the hotel industry is based on human mobility and
interaction. Valle (2020) also stated that interaction factors could significantly affect the
industry’s ability to recover. Hale (2020) initially noted that the variable nature of China’s hotel
sector would cause variations in responses to the pandemic, agreeing with Bouder (2020). Hadi,
Katrircioglu, & Adaoglu (2020) introduced the aspect of the hotel sector’s vulnerability to
recovery milestones. However, the capacity of the hotel and tourism industries to recover after a
fall necessitates several approaches, including consideration for stock markets (Zhang, Hu, & Ji,
2020; Ru, Yang, & Ji, 2020; Kizys, Tzouvanas & Donadelli, 2020). Because of the nature of the
hotel industry during the pandemic, it may face numerous challenges.
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2.2.2. The Chinese Hotel Sector During the Pandemic
The COVID-19 pandemic has greatly impacted the Chinese hotel sector. To affirm the
latter, qualitative study approach finding by Enger et al.(2020) predicts that by 2020, hotels will
be increasingly employing touchless checkouts via email and hotel applications and unique
touchless or non-contact cleaning procedures to improve profits. In a retrospective study, Hu et
al.(2020) also noted significant advancements in China’s hotels to increase its profits despite the
pandemic. Tellioglu (2021), on the other hand, contradicts Hu et al. (2020) and Enger et al.’s
(2020) conclusions by observing large drops in hotel company rates in the Chinese domain
following the COVID-19 pandemic. The losses in business rates could be ascribed to low turnout
due to the pandemic’s hygiene-related declines, as most tourists prefer clean circumstances
(Khan et al.,2021; Hu et al.,2021). Similar to Khan et al. (2021), Milovanovic (2021) highlighted
hygiene as a critical factor in hotel selection decision-making. It is worth noting that major
changes have occurred in the hotel industry’s operations in China prior to and after the COVID19 emergence.
Following the onset of the COVID-19 pandemic, several adjustments and important
developments in hotel operations and management have been documented in China (Hu et
al.,2020). Sarwari and Huq (2021) reported that occupancy rates of the hotels dropped
significantly owing to the effects of the pandemic, corroborating findings that were documented
by Hao, Xiao & Chon (2020), as indicated in Figure 3.1. Even though Hu et al. (2020)
documented decreased occupancy rates in the hotel sector, Zhang et al. (2020) conflict with the
latter by highlighting that only a few of the world’s wealthiest and most luxurious hotels saw
incomes remain flat or even climb slightly in 2020. In agreement with Hu et al.(2020), a
September 2020 research issued by STR, which employed online surveys to study the COVI-
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19pandemic effects, revealed that the COVID-19 emergence had a major influence on China’s
hotel industry. Shin & Kang (2020), however, after employing online experiments to study social
distancing, ascertained that the occupancy rate in Chinese hotels dropped by 89% by midJanuary 2020 due to such restrictions. According to Liu et al.(2021), the post-pandemic era has
resulted in a shift away from human labour toward “self-service” technology due to the
pandemic’s demands of social distancing. When it comes to the post-pandemic lodging
preferences of Chinese domestic travellers, Yang et al. (2021) provided a national overview,
which corroborated Crawford’s (2021) review of the health of China’s hotel market. Based on the
findings reported in the reviewed studies, it can be noted that the luxury hotel sector experienced
major occupancy declines owing to the COVID-19 pandemic.
Most hotels had issues during the Covid-19 outbreak due to information pollution and a
lack of crisis management expertise (Demir et al.,2021). In this regard, several popular tourist
sites and cultural institutions were forced to close (Bhuiyan et al., 2020). An online review
conducted by Baum and Hai (2020) which utilised a variety of databases, showed that visitors
attempted to reclaim payments linked with cancelled vacation plans owing to constraints,
quarantines, and social isolation throughout the process, which corresponded with findings
reported by Bhuiyan et al. (2020). However, according to Sigala (2020), potential visitors’
interest in tourism has grown as they look for alternatives to travel, such as virtual entertainment.
As a result, people turn to virtual platforms to fulfil their social needs, such as cultural
participation, by learning about new places, meeting new people, and exchanging ideas.
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Figure 3.1: China’s hotel industry occupancy shows the occupancy rates over the past few years,
with the COVID-19 having significantly impacted the occupancy rates (Hao, Xiao & Chon,
2020).
Several hotel organisations in China have released financial accounts showing losses
extended into the first quarter, according to a survey conducted by Khan et al. (2021). Compared
to profit rates in 2019, Zhang et al. (2020) documented Jinjiang International’s net profit drop by
42.3% to a meagre 171 million Yuan in the first quarter of 2020, agreeing with previous
assertions (Sun, 2020). A 50 percent loss in operating cash flow and an 80 percent drop in sales
was reported by Wu (2020) for Dossen International Group, corroborating previous assertions
(Sun, 2020; Zhang et al.,2020). However, earlier studies documented major hotel losses despite
failure to indicate reasons for the losses (Wu, 2020; Zhang, 2020; Sun, 2020; Zhang et al.,2020;
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Lanjing, 2020). Such declines in hotel visits and occupancy are indicators of significant losses
caused to the hotel industry by the pandemic.
Hotel losses can be linked to underperformance. In their assertions, Krishnan et al. (2021)
noted significant underperformance in the hotel industry, causing substantial shifts and sublets
post-pandemic. Agustina and Yosintha (2020) also reported similar findings to the latter by
documenting significant closure of the hotels globally with an occupancy rate of less than 15%,
which is an indicator of underperformance. Hoang et al. (2021) also affirmed the latter by noting
significant losses in hotel performance following the COVID-19 pandemic. However, in the
study, aspects such as low occupancy rates and pay cuts were the drivers of underperformance.
The performance of hotels, therefore, reduced significantly following the pandemic than before
the emergence of the pandemic. To accord to the latter, the PWC advisory (2020) report
indicated a 40% closure of the hotels in China and other Asia countries, with mainland China
having instituted the shutdown as early as January 2020. Arabadzhyan et al. (2021) affirm the
latter by noting a significant drop by 74% of international tourism that caused a negative
performance index in most luxurious hotels in China. UNWTO (2021) also highlighted the
simultaneous change in conditions in supply and demand alongside travel bans that caused
underperformance, unlike in previous studies where occupancy reduction and pay-cuts were
considered the reasons for underperformance (Arabadzhyan et al., 2021; Hoang et al., 2021;
Inoue et al., 2018; Ünsar, 2011 ). These losses were evident across many hotels in China,
suggesting the impact caused by the COVID-19 on hotel underperformance and the concomitant
reporting of revenue losses.
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2.2.3 Emergent Issues and Changes in the Chinese Hotel Industry
The number of hotel admissions has been the subject of various contradicting reports,
with some indicating a considerable increase in hotel visits and others indicating a significant
drop during the COVID-19 epidemic (Zhang, 2020). Milovanovic (2021) established that hotel
guests increased dramatically during the COVID-19 pandemic, contradicting prior findings by
Khan et al. (202) and Tellioglu (2021), who reported very few hotel visits during the pandemic.
Goh and Baum (2021) affirmed the latter by highlighting that the hygienic considerations in light
of the restrictions and guidelines imposed by the COVID-19 pandemic could result in low hotel
admission. Thus, recovery of hotel operations during the pandemic is contingent on the hotels’
ability to adapt quickly and innovate to remain productive and attract more visits.
The operations following the COVID-19 pandemic have also seen significant
modifications in the hotel sector compared to previous years. Moreover, service delivery
standards in quarantine hotels have changed to become contactless and virtual client interactions
(Zhang et al., 2020). To affirm the latter, a qualitative study conducted by Tussyadiah (2020),
which employed semi-structured interviews, revealed an increase in service automation and
client experience during the COVID-19 pandemic due to the use of robots artificial intelligence
in hotels. Similar findings were highlighted in a study conducted by Jiang and Wen (2020)that
utilised surveys, which showed the role of contactless operations in China’s hotels to safeguard
against the COVID-19 virus. According to earlier studies, customers currently prefer clean hotels
and are willing to pay a premium for a cleaner, hence offering a more disinfected
accommodation (Zemke et al., 2015; Zhang et al.,2021; Adim et al.,2020). As a result of the
pandemic, hotels’ plans and management practices for accommodating visitors shifted
significantly.
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2.3 Pandemic Related Challenges
2.3.1 Reduction in Hotel Visits
The second part of the review looks at how the pandemic affected and challenged the
hospitality industry. As a result of the pandemic, customers became more concerned about safety
and sanitation, impacting the number of hotel visits (Shin & Kang, 2020). The latter can be
affirmed in a study conducted by Pappas & Glyptou (2021) that utilised online surveys. The
study showed that the COVID-19 influenced visitors’ housing preferences, resulting in vacation
rentals over ordinary hotel rooms. Zhang et al.(2021) also noted a similar trend to those
documented by Pappas and Glyptou (2021), where the COVID-19 had a large impact on the
shared housing marketin a review that utilised several databases. While demand-driven scarcity
cues frequently influence tourists’ purchasing intentions, the current outbreak had the opposite
effect (Li et al., 2021). In their qualitative study based on interviews, Sharma et al.(2021) linked
reduced hotel visits to the reduction in household and business-related travel. Unlike in Sharma
et al.(2021), assertions where business travels caused hotel visits, a semi-structured interview
study conducted by Rawal et al.(2020) highlighted safety issues as the significant cause of
reduction in hotel customers. However, Zhang et al. (2021) conflicted with the latter by outlining
contactless arrangements related to checkouts via hotel apps and emails as the major causes that
resulted in a reduction in hotel visits. According to Cook et al.(2020), the customers have been
obligated to stay at home to reduce the spread of the virus, which reduced hospital visits,
corroborating findings by Polemis (2021). Therefore, people’s perceptions have shifted due to the
pandemic, which is influencing their purchasing decisions and hotel visits.
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2.3.2 Increased Cost of Hotel Maintenance and Modification
As a result of technological improvements, the hotel industry faces new challenges,
including cleanliness, hygiene, and safety problems as maintenance approaches (Pillai et al.,
2021). The hotel industry will not return to pre-COVID-19 levels until 2023 due to the
maintenance costs and modifications required for their operation (Krishnan et al.,2020; Great
China Report, 2021; Shi & Chan, 2020). The outbreak considerably impacted hotel occupancy
rates during the pandemic, suggesting significant changes in hotel occupancy in China. This
reduction in occupancy rates is particularly attributed to high maintenance rates and high hygiene
demands (Gandhi & Dube, 2021) ( Figure 3.2). The World Tourism Organization (2020) report
corroborate findings by Krishnan et al. (2020), noting that the tourism industry is undergoing a
catastrophic slump, which requires high maintenance of social distancing and hotel hygiene. The
WTO (2020) also affirmed the latter by outlining that such maintenance costs could make it
impossible to reintroduce capacity and infrastructure into the tourism supply chain following
their loss. The latter is especially true for economies that are more vulnerable, such as those in
lower-income groups. Therefore, maintenance costs and modification of hotel operations
continue to impact the luxurious hotel after the COVI-19 pandemic.
The health issue has had an enormous impact on China’s hotel industry, which was
among the first to suffer, according to an interview study conducted by Zhang et al. (2020). Sun
et al. (2020) highlighted that government restrictions such as social distancing and adoption of
high hygiene practices significantly influence the daily routine of hotels, forcing some to adopt
robotics and technology to serve customers. Shin et al. (2021) contradicted the findings reported
by Zhang et al. (2021) by highlighting the cancellation of vacation plans and hotel reservations
as factors that jeopardised hotel staff’ employment and financial stability. Zhang et al. (2020) and
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Sun et al. (2020) also brought in the aspect of increased demand for hotel renovation projects to
have been halted due to labour and financial constraints, impeding the growth of local hotel
chains, conflicting the previous report’s reasons for hotel modification changes. However,
Lanjing (2020) noted that many hotel owners, particularly lone proprietors, temporarily closed or
relocated their establishments to stay afloat. As a result of the latter, the value of hotel stock has
plummeted considerably, suggesting that the outbreak caused havoc on the market and
profitability of the hotel business.
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Figure 3.2: Estimated occupancy rates in the hotels’ sector in China, Canada and the US between
2019-2020 (Gandhi & Dube, 2021).
2.3.3 Adjusting to Post Pandemic Restrictions
Technology also played a role in providing services to customers, which forms an
adjustment strategy for hotels to the COVID-19 repercussions(Gursoy & Chi, 2020). The
lockdown imposed by the Chinese government altered the way businesses in the hospitality
industry function, as new norms and COVID-19 requirements such as maintaining proper
hygiene and social distance limited the number of visitors that could be hosted in such
establishments (Breier et al.,2020). Milovanovic (2021) concurs with Breier et al. (2020) by
establishing that COVID-19 disruptions adversely impacted demand for hotel services and,
consequently, the financial stability of hotels. However, despite the mentioned effects, adjusting
to the effects of the pandemic requires varied strategies (Glossing et al.,2020). According to a
semi-structured interview qualitative study conducted by Kaushal and Srivastava (2021),
numerous hotels accommodated confined individuals and displaced medical personnel caring for
COVID patients. In light of the latter, Jiang and Wen (2020) and Wong et al. (2020) posit that
hotels now have a new responsibility to meet their guests’ emotional and physical requirements
and medical personnel who care for the COVID-19 patients. According to Jung et al.(2021), the
number of hotel employees decreased significantly while the number of staff placed on leave
increased significantly. Wang et al. (2015) affirmed the latter by noting that COVID-19 was a
substantial source of workplace stress due to its direct impact on job instability and employee
fear of infection. Therefore, such aspects must be considered as they form vital challenges
brought by the COVID-19 towards the hotel sector.
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The amount payable to hotels also affects the hotel admission rates post-pandemic and
during the pandemic. According to a preliminary study, one-third of restaurant customers and a
fourth of hotel visitors are willing to pay more for enhanced protection (Zhang et al.,2020). In
addition to the latter, Gursoy et al. (2020) noted that visitors would foot the bill for additional
safety and sanitary procedures, as customers have come to expect them from hospitality
establishments. Jiang and Wen (2020) note that each of the safety precautions mentioned by
Gursoy et al. (2020) were necessary and must be addressed and considered for customers willing
to pay for hotel costs. Moreover, Sarwari and Huq (2021) agree with Gursoy et al. (2020) that
without safety precautions, the hotels would not conform to customers’ demands in light of the
changes that hotels encountered as a result of the COVID-19 pandemic. These findings suggest
that in addition to travel bans and lockdowns, the hospitality industry changes are expected to
suffer losses due to social isolation and social alienation
2.3 Post-Pandemic Recovery
2.3.1 Hotel Innovation Strategies as a Recovery Model
The third section discusses post-pandemic recovery, including stakeholder participation
and the impact of policy on recovery. The global increase in COVID -19 occurrences has
demonstrated the financial impact on lodging facilities. The listing of numerous hotel chains has
eroded Real Estate Investment Trust shareholder (REIT) confidence, and REITs cannot pay
dividends because real estate components have been severely impacted (Krishnan et al., 2020).
Because of the operational challenges, now is an excellent time to purchase distressed hotel
assets as recovery strategies (Schaffer, 2020). Moreover, Cendyn (2020) highlighted various
strategies, including asset purchase by targeting visitors as a recovery modality for these hotels,
as demonstrated in Figure 3.3. Gursoy & Chi (2020) agree with the report documented by
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Krishnan et al. (2020) by suggesting the involvement of investors in the hotel sector as a
mechanism of purchasing the hotel assets for recovery ability. As a result of the latter, Dai et al.(
2020) posit that luxury hotels are not always the first choice for restoring existing assets and
should be considered the first choice to recover the hotel sector post-pandemic.
Figure 3.3: Recovery strategy for the China hotels, which entails a variety of strategies such as
creating awareness, investments, purchasing of assets and technological adoption (Cendyn,
2020).
For health and financial reasons, hotels have advised several departments (such as
reservations, accounting, and human resources) to allow employees to work from home during
the epidemic. This preference has, it turns out, persisted even after the pandemic (Kaushal &
Srivastova, 2020). As a result of the outbreak and subsequent investigations, hotels have
expanded their investments in technological systems, tools, and apps. According to Zeng et al.
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(2020), robots are frequently used in the hospitality industry to do tasks such as moving luggage,
greeting guests, and cleaning rooms. Hao et al. (2020) contribute to the latter by highlighting
hotel sectors expectations to experience a digital shift that would see very high recovery rates. In
the authors’ opinion, a wide range of technologies, including personal control devices and mobile
payment systems, will become more commonplace shortly (Hao, Xiao, & Chon, 2020). Sam et
al.(2020)agree with assertions made by Zeng et al. (2020) and Hao et al. (2020) by suggesting
the introduction of robot-technology hotels to labour-intensive hotels during COVID-19 to act as
recovery models for the industry. Tourism and hospitality businesses are now employing a wide
range of service robots with varying technical levels due to recent advances in artificial
intelligence and robotics (Adim et al.,2020; Enger et al.,2020). Even though there were
significant reductions in hotel visits, the employment of hotels as quarantine centres also
attracted several customers creating income (Teng et al., 2021; Jones & Comfort, 2020). The
latter indicates the role of technology in hotel recovery post-pandemic.
Technology adoption would propel the recovery process more rapidly. While the Chinese
hotel business appears to be on the mend for the long term, there are still roadblocks to overcome
(Hu et al.,2021). Several groups predicted that the hotel would do well in 2020, and they were
not wrong. A six- to twelve-month recovery period for Hilton would entail revenue losses of
about $50 million if technology were adopted in the industry. Zhang et al. (2020) indicated that
if the pandemic recurs in China, the OCC will fall to around 3.5% in 2020. Nevertheless, the
reduction could reach 5.5% upon technology adoption. However, according to the China
Hospitality Association (2020), OCC would see sales fall by 41.5% year on year in the second
quarter of 2020, resulting in a revenue loss of 40 billion Yuan. There will be a flurry of trade
shows and business meetings in the third quarter of 2020 when people return from the summer
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holidays. The latter suggests the role of technology adoption in the recovery of China’s hotel
sector post-pandemic.
2.3.2 Role of Government in Recovery
Governments at all levels must act quickly and collaboratively to mitigate the damage
they cause and aid the economy’s recovery post-pandemic (OECD, 2020). In the light of the
report by the OECD (2020), Teng et al.(2020) add that the COVID-19 pandemic caused the hotel
industry to gain a unique opportunity to demonstrate its commitment to social responsibility. The
COVID-19 pandemic has therefore caused the hotel industry and government to demonstrate its
corporate social responsibility in public health by opening quarantine hotels. In this regard,
Krishnan et al. (2021) note that investors are pessimistic and putting significant investment in the
hotel sector as a recovery approach following the government’s directive. Singh and Kaushik
(2020) affirm the latter by highlighting that the government is advising hotels to take great care
to appeal to their guests, from gaining access to the food delivery area to offering work-and-stay
packages and publicising low rates to arranging simulated events. In response to the pandemic,
several hotels have already implemented a variety of adjustments as directed by the government,
such as cancellation rules, among other things (Shin & Kang, 2020; Sharma et al., 2020; Singh,
2020). Therefore, the government demonstrates key efforts to recover the hotel sector despite the
impacts caused by the COVID-19 pandemic. A description of the role of the government and the
key impacts of the pandemic have been highlighted in Appendix A, indicating a summary of how
such aspects impact China’s hotel industry and its recovery.
2.3.2 Technological Advances for Hotel Industry Recovery in China
Companies are expected to adopt substantial modifications to their activities and enhance
customer willingness to utilise their services (Gursoy & Chi, 2020). According to several clients,
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in order to reduce the time people spend interacting with people in the pandemic, the
employment of technologies to provide services is vital (Gursoy et al., 2020). Since they keep
guests socially isolated while delivering a safe and hygienic service, self-service kiosk check-in
machines and fully automated hotel check-in systems (such as mobile keys) have grown in
popularity recently (Shin & Kang, 2020; Zhao et al., 2020). Many prominent hotels, such as
Marriott International, Hilton, and Hyatt 4, use new or improved technology (such as cleaning
robots, electrostatic sprayers, and other similar equipment) to improve disinfection and hygiene
in their facilities (Garcia, 2020). According to Shin and Kang (2020), little steps to limit visitor
encounters and improve cleanliness have a positive impact on hotel booking intentions during
pandemics. Furthermore, due to the pandemic, hotels have made significant organisational
changes (Gursoy et al., 2020). Rather than focusing on new products or processes, organisational
innovations try to save costs and improve human resource management methods utilised by
hotels throughout the outbreak (Kilgore, 2020). Many hotel companies adopt cost-cutting
strategies such as layoffs and decreased remuneration to maintain their liquidity (Chaturvedi,
2020). Finally, marketing innovations are being used to improve a range of hotel procedures.
Membership programs for hotel chains, as well as other tactics associated with those programs,
are instances of the latter (Clark et al., 2020). Guillet and Tasci (2021) introduced the concept of
co-branding as a model for hotel industry recovery following the COVID-19 pandemic. Horwath
HTL (2020) report highlights that investors are conquering building projects that would
renovate, reposition and improve the hotel sector in China to restore it to its prime positions.
Horwath HTL (2021) also highlighted that domestic FIT was the strongest recovery approach for
the diminished Chinese hotels. Such approaches are key to the recovery of the hotel sector in
China and should be integrated into the recovery strategies for the industry.
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2.5 Research Gaps
Several theories are employed to understand research objectives, such as the grounded
theory, inductive theory, importance-performance analysis (IPA), and the nascent theory. In the
hospitality business, IPA, the grounded theory and the inductive theory are now commonly used.
Before the pandemic, China’s hotel industry was prospering, boasting the world’s largest hotels.
However, there has been little research into how the hotel sector in China progressed before,
during, and after the COVID-19 pandemic, which needs to be clarified. Similarly, much research
has been conducted on the issues associated with the pandemic. Nonetheless, a detailed
examination of how these issues arose and how each of the challenges impacted the hotel
business is lacking and, as a result, needs to be clarified. Effective crisis management solutions
are becoming vital during the pandemic, as crisis management methodologies supporting
industrial needs evolve. The demand-driven pricing hypothesis underpins revenue management,
but in practice, due to the COVID-19 pandemic’s low demand, marketing strategies and business
analytics are more important. Few articles have been written on the issue regarding the postpandemic recovery modalities, indicating a research need. The latter was identified as a result of
the limited investigation, which requires further investigation, thus, forming the research gap of
the current study.
2.6 Research Framework and Propositions
By using interpretivism, individuals can better understand their own and other people’s
motivations and actions. Rather than attempting to establish objective truths, interpretivism
philosophy seeks to understand individuals’ subjective meanings better. It is a school of thought
that explores social phenomena in their natural environments. The grounded theory method was
used as part of the study plan. When inductive processes are used to anticipate and explain
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behaviour, a grounded theory is developed. The grounded theory method collects data by direct
observation. Although it generates novel theories, the grounded theory is based on facts. The
choice for the grounded theory is based on the fact that there is already a body of information on
the subject (Kolb, 2012). Grounded theory is widely utilised to address a research question or to
collect qualitative data.
2.7 Chapter Summary
This chapter provides a synthesis of the comprehensive literature review conducted for
this study, demonstrating the role of the COVID-19 pandemic on China’s hotel sectors, the
challenges the industry faced during the pandemic, and recovery models for the hotel industry
following the COVID-19 pandemic.
As a consequence of our study project, we hope to learn more about the hospitality
industry’s post-pandemic recovery, notably in China’s luxury hotel sector, and how the two issues
overlap. Previous studies discovered that luxury hotel operations improved after the pandemic,
and the hotel industry in China initially expanded during the pandemic (PYMNTS, 2020), upon
which the literature review identified the research gap in the study (Krishnan et al.,2020). In
order to find trends in a large amount of data, the researchers used semi-structured interviews.
Theories can help fill in knowledge gaps about luxury hotel recovery in China after the
pandemic. One of the study’s main contributions is to help the hotel industry recover from the
outbreak by recommending several ways to help.
The themes highlighted are similar to those reported in the hospitality and hotel business
during the pandemic, and they include post-pandemic profit losses, issues linked to hotel
management, and enhanced methods as recovery models for hotels. Tables 2.1 and 2.2
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summarise the main points raised in the literature review based on the specified topics (Author,
2021).
Table 2.1: Sources of data that influenced China’s hotel sector and the challenges caused by
these sources (Author, 2021).
Influencing Factors
Data Sources
Internal
Challenges
Social media
Limited strategies for recovery
External
COVID-19
Customers data
Hotel management
Records of hotels
amid the pandemic
visits from the
models of hotels
hotels
Hotel consumer’s
Qualitative data
Government
Restrictions imposed by the
preferences
from studies
media sites
government affecting hotel
sustainability
Best recovery
Financial records
models
from hotels
Hotel
underperformance
Decreased hotel
Public views
Limited hotel visits
Hotel workers
Tourism
Change in customer preferences
and staff
journals and
for hotel services
responses
websites
Delivery records
International
Modification by hotels towards
hotel records
accommodating new rules
visits
Table 2.2: Enablers, challenges and benefits of the hotel sectors recovery strategies amid
COVID-19 effects (Author, 2021).
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Key Success Factors
Benefits
Challenges
COVID-19
Customers data
Integrating hotel
Increased profitability
Poor strategic planning and installation
recovery strategies post-
and recovery
could cause failure
Adapting to the new
Improves customer
Some demands may be challenging to
Hotel consumer’s
admission and meet’s
implement
preferences
their demand
Adjusting to guidelines
Reduces the risk of
Some restrictions and guidelines are strict
set by the health
disease contraction and
in that they affect the industry
protocols regarding the
enhances customer
substantially.
COVID-19 pandemic
safety, hence, attract
pandemic
more customers
Involving stakeholders
Enhances proper
and customers in
decision making to suit
decision making
people’s needs
regarding hotel activities
post-pandemic
Some decisions may be too demanding
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Appendices
Appendix A: Literature Review Table
Authors
Context
Methods
Discipline
Key Empirical
Contribution
Arabadzhyan,
COVID019 Impact
Online
A., Figini, P., &
on Hotels
review
Tourism
COVID-19 greatly
impacted the tourism
Zirulia, L.
industry
(2021).
Baum, T. &
COVID019 Impact
Online
Hospitality
Hai, T.N.
on Hotels
review using
management impacted the tourism
interpretation
industry
(2020).
COVID-19 greatly
Breier, M.,
Business innovation
Hospitality
Kallmuenzer,
role on hospitality
management strategies can reform
A., Clauss, T.,
industry during the
the tourism industry.
Gast, J., Kraus,
pandemic
S., & Tiberius,
Innovative business
Online
review
V. (2021).
Bhuiyan, M. A.
Sustainable tourism
Online
Hospitality
Tourism can be
H., Hassan, S.,
in the pandemic
Review
management developed to sustain
Darda, M. A., &
the impacts of the
Habib, M. W.
pandemic.
(2020).
POST PANDEMIC HOSPITALITY RECOVERY
Authors
Context
Methods
33
Discipline
Key Empirical
Contribution
Chaturvedi, A.
Effects of the
Online
(2020)
pandemic on hotel
review
Hospitality
The pandemic greatly
impacted hotels’
workers
financial capacity
China
Impact of the
Online
Hospitality
The pandemic greatly
Hospitality
pandemic on
review
and tourism
impacted hotels’
Association
lodging
financial capacity
(2020).
Dai, J. (2020).
China investment
Online
Hospitality
China has invested
in the hotel
review
and tourism
greatly in the Hotel
industry
Demir, M.,
Impact of the
Demir, Ş. Ş.,
pandemic on hotels
industry
Interviews
Tourism
Impact of the
pandemic on hotels
Dalgiç, A., &
Ergen, F. D.
(2021).
Authors
Context
Methods
Discipline
Key Empirical
Contribution
Crawford, M. A.
China’s hotel
(2021).
development
Review
Hospitality
Management
strategies to increase
revenue are diverse
post-pandemic
POST PANDEMIC HOSPITALITY RECOVERY
Garcia, I.
New hotel
(2020).
Cleaning Protocols
Review
34
Hospitality
New cleaning
protocols have been
enacted to manage the
pandemic
Gil A., M.J.,
Cessation of
&Yan W.
Luxury hotels
Review
Luxury hotels ceased
pose pandemic.
(2013).
Gössling, S.,
Global tourism
Review
Tourism
Global tourism
Scott, D., &
change post-
changed post-
Hall, C. M.
pandemic
pandemic
(2020).
Authors
Context
Methods
Discipline
Key Empirical
Contribution
Goh,
Jobs and hotel
E.andBaum,
management in
T.(2021).
pandemic
Gursoy, D., &
Current hospitality
Chi, C. G.
situations
Interview
Hospitality
Jobs in hotels reduced
and tourism
in pandemic
Online
Hospitality
The hospitality
review
and tourism
industry experienced
(2020).
major changes postpandemic
Hao, F., Xiao,
China’s hotel
Q., & Chon, K.
industry
(2020).
Review
Hospitality
Changes occurred in
and tourism
China’s hotel industry
post-pandemic.
POST PANDEMIC HOSPITALITY RECOVERY
35
Horwath HTL.
Pandemic impact
Online
Hospitality
The pandemic
(2021).
on hotels
review
and tourism
affected the hotel
sector significantly.
Hu, X., Ma, X.,
Pandemic impact
Review
Ren, L.,& Chen, on hotels
Hospitality
The pandemic
and tourism
affected the hotel
P.(2021).
Authors
sector significantly
Context
Methods
Discipline
Key Empirical
Contribution
Hu, X., Flahault, Pandemic impact
Online
Hospitality
Pandemic had a great
A., Temerev, A., and Chinese
review
and tourism
impact and Chinese
& Rozanova, L.
government’s role
government’s took a
(2021).
major role
Inoue, A.,
Pandemic impact
Kawakami, N.,
on hotels and jobs
Interview
Hospitality
Pandemic had an
and tourism
impact on hotels and
Eguchi, H.,
jobs
Tsutsumi, A.
(2018).
Jiang, Y., Wen,
Pandemic impact
Online
Hospitality
Pandemic had an
J. (2020).
on hotels
review
and tourism
impact on hotels and
jobs
Jones, P., &
Pandemic impact
Comfort, D.
on hotels
(2020).
Review
Hospitality
Pandemic had an
and tourism
impact on hotels and
jobs
POST PANDEMIC HOSPITALITY RECOVERY
Authors
Context
Methods
36
Discipline
Key Empirical
Contribution
Jung, H. S.,
Pandemic impact
Online
Hospitality
Pandemic had an
Jung, Y. S.,
on hotels
review
and tourism
impact on hotels and
Yoon, H. H.
jobs
(2021).
Kaushal, V.,
Pandemic impact
Srivastava, S.
on hotels
Interview
Hospitality
Pandemic had an
and tourism
impact on hotels and
(2021).
jobs
Khan, K.I.
Pandemic impact
Niazi, A. Nasir,
on hotels
Survey
Hospitality
Pandemic had an
and tourism
impact on hotels and
A. Hussain, M.
jobs
and Khan, M.I
(2021).
Kilgore, T.
Pandemic impact
Online
Hospitality
Pandemic had an
(2020).
on hotels and jobs
review
and tourism
impact on hotels and
jobs
Krishnan, V.,
Pandemic impact
Online
Hospitality
Pandemic had an
Mann, R.,
on hotels
review
and tourism
impact on hotels and
Seitzman, N., &
jobs
Wittkamp, N.
(2020).
Authors
Context
Methods
Discipline
Key Empirical
POST PANDEMIC HOSPITALITY RECOVERY
37
Contribution
Kolb, S. M.
Grounded theory
(2012).
Online
Hospitality
Grounded theory
review
and tourism
understanding
Landing, F.
Pandemic impact
Online
Hospitality
Pandemic had an
(2020).
on hotels
review
and tourism
impact on hotels and
jobs
Lai, I. K. W., &
Importance of
Online
Hospitality
Pandemic had an
Hitchcock, M.
tourism analysis
review
and tourism
impact on hotels and
(2015).
jobs
Lai, I. K. W., &
Pandemic impact
Online
Hospitality
Technology greatly
Wong, J. W. C.
on hotels
review
and tourism
impacts hotel activity
Liu, C. & Hung,
Technology in
Interviews
Hospitality
K. (2021).
hotels
Authors
Context
(2020).
and tourism
Methods
Discipline
Key Empirical
Contribution
Li, Y., Yao, J.,
Pandemic impact
Online
Hospitality
Pandemic had an
Chen, J. (2021).
on hotels
review
and tourism
impact on hotels and
jobs
Milovanović, V.
Pandemic impact
Online
Hospitality
Pandemic had an
(2021).
on hotels
review
and tourism
impact on hotels and
jobs
OECD. (2020).
Pandemic impact
Online
Hospitality
Pandemic had an
POST PANDEMIC HOSPITALITY RECOVERY
on hotels
review
38
and tourism
impact on hotels and
jobs
Pappas, N.,
Pandemic impact
Online
Hospitality
Pandemic had an
Glyptou, K.
on hotels
review
and tourism
impact on hotels and
(2021).
Authors
jobs
Context
Methods
Discipline
Key Empirical
Contribution
Pillai, S. G.,
Pandemic impact
Online
Hospitality
Pandemic had an
Haldorai, K.,
on hotels
review
and tourism
impact on hotels and
Seo, W. S., &
jobs
Kim, W. G.
(2021).
Polemis, M. L.
Pandemic impact
Online
Hospitality
Pandemic had an
(2021).
on hotels
review
and tourism
impact on hotels and
jobs
PwC Advisory.
Pandemic impact
Online
Hospitality
Pandemic had an
on hotels
review
and tourism
impact on hotels and
jobs
Rawal, Y. S.,
Pandemic impact
Pal, S., Bagchi,
on hotels
Interview
Hospitality
Pandemic had an
and tourism
impact on hotels and
P., & Dani, R.
jobs
(2020).
Authors
Context
Methods
Discipline
Key Empirical
POST PANDEMIC HOSPITALITY RECOVERY
39
Contribution
Sam, S. K.,
Pandemic impact
Online
Hospitality
Pandemic had an
Kim, J., Badu-
on hotels
review
and tourism
impact on hotels and
Baiden, F.,
jobs
Giroux, M., &
Choi, Y. (2020).
Sarwari, S.,
Pandemic impact
Online
Hospitality
Pandemic had an
Huq, S., &
on hotels
review
and tourism
impact on hotels and
Minar, T. A.
jobs
(2020).
Schaffer, S.
Pandemic impact
Online
Hospitality
Pandemic had an
(2020).
on hotels
review
and tourism
impact on hotels and
jobs
Sharma, A.,
Pandemic impact
Online
Hospitality
Pandemic had an
Shin, H., Santa-
on hotels
review
and tourism
impact on hotels and
María, M. J., &
jobs
Nicolau, J. L.
(2021).
Shin, H., &
Pandemic impact
Online
Hospitality
Pandemic had an
Kang, J. (2020).
on hotels
review
and tourism
impact on hotels and
jobs
Authors
Context
Methods
Discipline
Key Empirical
Contribution
POST PANDEMIC HOSPITALITY RECOVERY
40
Shin, H.,
Health risk and
Online
Hospitality
Health workers are at
Sharma, A.,
hotel clients
review
and tourism
risk of the pandemic
Nicolau, J. L., &
in hotels
Kang, J. (2021).
Sigala, M.
Impact of the
Online
Business
Pandemic had an
(2020).
pandemic on
review
research
impact on hotels and
tourism
jobs
Singh, V.
Hotel marketing
Online
Hospitality
Hotels could be
(2020).
strategies
review
and tourism
marketed using
technological
advancements to boots
their performance
post-pandemic
STR. (2021).
Impact COVID-19
Online
on hotels
review
Tourism
Pandemic had an
impact on hotels and
jobs
Tellingly, S .
Impact COVID-19
Online
(202 1 ).
on hotels
review
Tourism
Pandemic had an
impact on hotels and
jobs
Authors
Context
Methods
Discipline
Key Empirical
Contribution
Teng, X., Teng,
Corporate Social
Online
Public
Cooperate social
Y.-M., Wu, K.-
Responsibility
review
health
responsibility plays a
POST PANDEMIC HOSPITALITY RECOVERY
41
S., & Chang, B.-
vital role in workers
G. (2021).
health in hotels
Tussyadiah, L.
Technology in
Online
Hospitality
Technology and
(2020).
hotels
review
and tourism
artificial intelligence
improve hotels
operations postpandemic
UNWTO.
Tourism state post-
Online
Hospitality
Tourism declined
(2020).
pandemic
review
and tourism
significantly postpandemic
Victor, C.A.,
Technology in
Online
Hospitality
Technology and
Subai, A.A ., &
hotels
review
and tourism
artificial intelligence
Konya, K.T .
improve hotels
(2021).
operations post.
Yang, F. X., Li,
Impact COVID-19
Online
X., Lau, V. M.-
on hotels
review
Hospitality
Pandemic had an
impact on hotels and
C., & Zhu, V. Z.
jobs
(2021).
Authors
Context
Methods
Discipline
Key Empirical
Contribution
Wang, H.J., Lu,
Impact COVID-19
C.Q., Siu, O.l.
on hotels
(2015).
Interview
Hospitality
Pandemic had an
impact on hotels and
jobs
POST PANDEMIC HOSPITALITY RECOVERY
Wong, A.K.F.,
Impact COVID-19
Kim, S., Kim, J., on hotels
Online
42
Hospitality
review
impact on hotels and
Han, H. (2021).
WTO. (2020).
Pandemic had an
jobs
Impact COVID-19
Online
on hotels
review
Hospitality
Pandemic had an
impact on hotels and
jobs
Wu, W (2020).
Impact COVID-19
Online
on hotels
review
Hospitality
Pandemic had an
impact on hotels and
jobs
Zemke, D.,
Hotel cleanness
Online
Hospitality
Pandemic had an
Neal, J.,
importance amid
review
and tourism
impact on hotels and
Shoemaker, S.
the pandemic
jobs
and Kirsch, K.
(2015).
Authors
Context
Methods
Discipline
Key Empirical
Contribution
Zeng, Z., Chen,
Jinjiang Hotel
Survey
P. J., & Lew, A.
Hospitality
Jinjiang Hotel
and tourism
experienced
A. (2020).
significant losses postpandemic
Zhang X. 2020.
Impact of COVID-
Online
Hospitality
Pandemic had an
19 on Chinese
review
and tourism
impact on hotels and
Hotel Industry
jobs
POST PANDEMIC HOSPITALITY RECOVERY
43
Zhang, C., Cui,
Chinas response to
Online
Hospitality
The government took
R., Xu, C., &
pandemic
review
and tourism
a major role in
Wang, J. (2020).
mitigating the
pandemic to save the
hotel industry.
Zhang, M.,
Chinas response to
Online
Hospitality
The government took
Geng, R.,
pandemic
review
and tourism
a major role in
Huang, Y., Ren,
mitigating the
S. (2021).
pandemic to save the
hotel industry.
Zhang, J., Xie,
Chinas response to
C., Wang, J.,
pandemic
Interview
Hospitality
The government took
and tourism
a major role in
Morrison, A.
mitigating the
and Coca-
pandemic to save the
Stefaniak, A.
hotel industry.
(2020).
Authors
Context
Methods
Discipline
Key Empirical
Contribution
Zhao, Y.,
Cheng, S., Yu,
X., & Xu, H.
(2020).
Chinas response to
Online
Hospitality
The government took
pandemic
review
and tourism
a major role in
mitigating the
pandemic to save the
hotel industry.
POST PANDEMIC HOSPITALITY RECOVERY
44
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