Hotels act to protect guests amid coronavirus outbreak

Amid the coronavirus outbreak in China, hotel groups that would normally make a fast buck during the Spring Festival holiday are taking measures to protect their guests. They have been swifter to act than they did with SARS in 2003.

Experts with Hoteln, a consulting firm for the hospitality industry, have noted that hotels now have a better ability to resist risks, especially large-scale hotel chains. The effect of the outbreak is only temporary and will soon be over.

The coronavirus began in December and continued into Spring Festival－one of the country's biggest economic events with the busiest travel rush. Considering this, most cities in China extended the holiday until Feb 9. The public are being told to stay at home rather than having family reunions or trips.

As millions of people have postponed or canceled their travel plans, hospitality companies at home and abroad are waiving cancellation fees or offering free changes.

Top-end international hotel chains are following guidance issued by the World Health Organization to protect guests from the coronavirus.

Marriott International is waiving cancellation fees for hotel stays through Feb 29 for guests traveling to or from China. "The well-being of our guests and associates is of paramount importance," it said in a statement.

Wyndham Hotels and Resorts is sending medical supplies to its hotels in China for distribution to workers, guests and members of the community. It has announced a modification and cancellation waiver for all guests who plan to travel to any Hilton-branded property in China between Jan 22 and Feb 29.

Those planning to travel from China to a Hilton property in other countries can also have their penalties waived.

InterContinental Hotels& Resorts has a similar practice. According to the company, guests traveling to or from China between Jan 23 and Feb 29 will be able to change or cancel a valid booking reservation via the hotel, IHG.com, the IHG App, or the IHG Central Reservations Center, free of charge.

Homegrown hotels, including Wanda Hotels and Resorts, are doing the same. Of 300,000 hotels on Ctrip, China's largest online booking platform, which had agreed to refunds on bookings between Jan 22 and Feb 8, four-fifths are domestic.

Huazhu Group is implementing a series of non-touch room services. Guests can serve themselves food and check-in and out via a mobile app.

What lies ahead for the hospitality sector is unknown. Analysts at Guotai Junan Securities said epidemics have the widest and the most severe effect on the tourism industry and its like, compared with other crises.

"The tourism revenue of the Spring Festival holiday is expected to account for about 10 percent of the year's tourism revenue. This year will see great losses," said Yang Yanfeng at Beijing Union University.

Zhou Mingqi, founder of T-identifier Think Tank, said stock market felt the effect too. Hotels and airports that would have benefited from the Spring Festival holiday have experienced a plunge in share prices since Jan 20. "How big the impact of coronavirus will have on the tourism industry depends on the development and control afterward," he said.

In an interview, Liang Jianzhang, co-founder of Ctrip, said that back in 2003 SARS was a blow to the entire industry but its effects came and went quickly. Tourism and related industries bounced back in the month after SARS ended. So did Ctrip.

He said coronavirus may hurt the Chinese tourism industry's first-quarter profits. In fact, the period is a relatively low season for the industry. February and March after the Spring Festival are not the most critical months for trade. That means the effect throughout the year is expected to be relatively controllable.

"There will be business opportunities after the outbreak. I hope hoteliers can stay calm and not be pessimistic. They will manage if they actively and diligently adjust themselves and equip with alternative plans," said Ma Yingyao, who is chairing Qingdao Sunmei Group.