Miro Copic, Co-Founder of BottomLine Marketing discusses the impact of the Coronavirus on leisure and hospitality industry. The shutdown has not only devastated restaurants, bars, hotels and tourist attractions but it has impacted many related industries. For example, Boeing’s commercial aircraft division has laid off over 13,000 workers (both lay-offs and buy outs) as it received no new aircraft orders in April along with many cancellations for existing orders. Hertz, the largest rental car company, declared bankruptcy, laid off or furloughed nearly 16,000 employees and will not buy any new cars for the remainder of 2020. This will be a huge blow to the auto industry as nearly 10% of industry sales come from car rental fleets. To make matters worse, Hertz will accelerate the sale of many cars in its fleet, thereby depressing the price of new and used vehicles. While this is good for consumers, it’s not good for the auto industry.
At the other end of the spectrum, Copic discusses the reopening of casinos in Las Vegas and key tourist attractions in San Diego. Las Vegas will be very different with casinos at 25% capacity, reservation only dine-in options, no spas, nightclubs or big shows. Las Vegas advertising, which long featured the phrase “What Happens in Vegas, Stays in Vegas” is changing to “The world has changed and Vegas is changing with it”. In San Diego, major attractions like Lego Land, Sea World and the USS Midway are planning to open in July. (KPBS News – 5/29/20)