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Facing uncertainty, the travel industry is focusing on COVID-19 relief


2020年3月27日

Challenging times are revelatory. The true character of a leader, the strength of a bond between friends, and the depth of commitment from a partner are rarely proven in the good times but are more often forged in the crucible of loss, threat, and adversity. Fortunately, the current crisis has provided ample evidence that many companies in the travel industry—the very airlines, hotels, and other providers that are so closely associated with many of our best personal memories—can be counted on to do what needs to be done, even as they ponder their own fates.

While it is indisputable that the travel industry has suffered through hard times in the past —few industries were as severely impacted by the terror attacks of 9/11 in the US or the spread of SARS—never have exogenous factors dealt quite such a severe blow. Air and passenger rail travel demand has fallen to near zero, hotels in many regions are virtually empty, and many cruise ships are literally sailing the seas in search of a welcome place to dock. The World Travel and Tourism Council estimates that up to 75 million jobs are at immediate risk and Travel and Tourism may suffer up to $2.1 trillion USD losses in GDP this year. Few countries have been spared, and travel companies in every corner of the globe have been brought low by this crisis.

 

Community commitment

But despite these grim realities of lost revenue, steep financial losses, and the many gut-wrenching furloughs that have and will continue to occur, several industry players have shown commendable leadership. Many travel companies have redoubled their commitments to help the communities they serve pulling though these difficult times.

If, for example, 60 percent of the US population falls sick and the virus continues to spread, then within six months the nation would require more than seven times the number of available hospital beds. Unprecedented demand for hospital rooms, beds, and critical health services equipment—coupled with a lack of available supply—is putting lives at risk. IBM is collaborating with hotels and healthcare agencies to elevate their responses to COVID-19 by enabling a more efficient use of beds and additional rooms. Access to rooms and beds across the hospitality industry for healthcare workers, military, families, and non-infectious/non-critical patients could save lives, so IBM is proud to lend our technical support to our clients to help make their hospitality assets available when and where they can do the most good for our communities.

American Airlines operated its first cargo-only flight in over 35 years, as the airline is utilizing passenger routes to get medical supplies and other materials to areas of need. The first cargo-only flight departed Dallas-Fort Worth airport on March 20 carrying medical supplies to Frankfurt, Germany. United Airlines also started flying cargo-only flights March 19 to help get critical goods into the hands of the businesses and people who need them most. Airlines are utilizing their network capabilities and personnel to transport vital supplies.

Flexible solutions

Travel industry employees also are making sacrifices. Thousands of employees across the passenger rail, airline, hospitality, and ground service sectors continue to perform their responsibilities as continued operation of trains, planes, and automobiles are helping to get much needed people and supplies where they are most necessary. Even though service frequency has been severely diminished, these essential links are an important part of our collective fight against this virus. To aid in these efforts, IBM will continue to help our client leaders reposition unused assets, ease the transition to an at-home workforce, and optimize employee and network schedules to get lifesaving supplies to those in need.

While it is clear that the travel industry has been severely impacted by current events and will be fundamentally reshaped, it is also apparent that this crisis is showing the public our industry's true colors and resolve. Previous challenges have molded the travel industry for the better, and there is every reason to hope that the same will be true this time around. Adversity is testing the mettle of the travel industry and its leaders, but as we emerge from the shadow of COVID-19 we would do well to remember the commitment the industry showed to our communities during its darkest hours.

To support our clients, IBM has gathered together a set of best practices and recommendations focused around four key priority areas: employees, customers and partners, finance and operations and community. Click here to access our COVID-19 Action Guide and related resources.


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Meet the author

Greg Land

Greg Land
IBM Global Industry Leader, Aviation, Hospitality and Travel Related Services


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