Few businesses were hit harder by the coronavirus pandemic than restaurants, cafés, and hotels - and although most of the world has gone back to ‘business as usual’, it appears that the aftershocks of the pandemic are still being felt by many in the hospitality sector. When observing the number of hospitality bankruptcy declarations from 2019 onwards, bankruptcies have increased significantly compared to other businesses in construction, industry, and communications. So much so, that in 2023 the hospitality bankruptcy rate was nearly twice that of the 2015 benchmark.
This dire prognosis may be hard to reconcile with reports of a post-corona recovery for travel accommodations and renewed enthusiasm for travel amongst consumers. Yet this apparent boost for tourism does not seem to be enough to keep some hospitality businesses afloat while they also deal with the pinch of a cost of living crisis.
