Hotels have been mostly empty this year, but leisure travel is starting to pick up.
These leisure travelers are the source of hotel reservations days in advance, according to Hyatt.
In the United States, over 65% of full-service hotel bookings and over 75% of budget hotel bookings were made just four days in advance in June, CEO Mark Hoplamazian said on Tuesday. during the call for the company’s second quarter results.
Hyatt has never experienced this shortest transitional reservation period.
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The fallout from the pandemic affected travel.
“Considering the booking windows… the impact is instantaneous,” he said, noting that about 35% of Hyatt hotels worldwide are closing their doors.
“Until significant and consistent progress is made to slow the spread of the virus, international travel in particular will continue to be negatively affected,” Hoplamazian added.
At the end of June, 80% of Hyatt hotels were open; 87% were open at the end of July.
The rest should open in the coming months.
Despite the precautions of hotels, however, visiting them is still risky, said Dr Albert Ko, professor of epidemiology and medicine at the Yale School of Public Health. Hotels can bring together travelers from states or countries with higher transmission rates, for example, and many carriers may not show symptoms.
“This is the kind of thing that worries us in terms of public health,” he said. “These parameters can be the cause of epidemics.”
To reassure potential customers, many hotels – from luxury resorts to budget brands – are sharing the changes they are making on their websites. New practices may include adding hand sanitizer stations in lobby areas, more frequent sanitizing of surfaces like elevator buttons, and removing additional items from rooms, such as pens and paper. Buffet breakfasts can also be replaced by prepackaged meals.
The CDC also suggests taking the stairs when possible and minimizing the use of common areas.
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Hyatt Hotels Corp. reported a second-quarter loss of $ 236 million on Monday, after reporting a profit for the same period a year earlier.
The Chicago-based company said it suffered a loss of $ 2.33 per share. Losses, adjusted for one-time costs, were $ 1.80 per share.
The results fell short of Wall Street’s expectations. The average estimate of eight analysts polled by Zacks Investment Research was for a loss of $ 1.38 per share.
The hotel operator posted revenue of $ 250 million over the period, which also fell short of Street’s forecast. Six analysts surveyed by Zacks forecast $ 250.6 million.
Shares of Hyatt Hotels are down 47% year-to-date. In the closing minutes of trading on Monday, shares hit $ 47.98, a 37% drop in the past 12 months.
The Associated Press contributed to this report.