COVID-19 had had a huge impact on the world economy and the global market. Most of the companies re on hold and are cancelling the important meetings, conferences and events.
Travelling has been seriously impacted and some of the companies are doing work on Work from home basis. The service industry has faced the most negative impact of coronavirus since in such a time goods are needed but services, except a few, are not the need of the hour.
These services include travel and tourism, hotel, IT and BPO. The decision-making process in the It and BPO industry has been stalled and all the upcoming projects have been postponed or cancelled.
The extent to which the pause in the service industry will hamper its future is quite big. It will also have some negative impact on the revenue growth in the quarter ending in June 2020 and many more to come.
Travel hospitality and tourism industry
These industries are facing an existential crisis due to the pandemic. The drop in these businesses is huge as most of the projects and contracts stand cancelled. The World Travel and Tourism Council projected a Global Loss of 75 million jobs and $2.1 trillion in revenue.
These losses grow day by day. Till April 2nd, British Airways had suspended 36,000 staffers. One of the hardest-hit travel industry is that of America where the US Travel Association depicts a loss of 4.6 million jobs through May. Us Weekly Jobless claims rose to a shocking 6.6. Million.
The IT industry had a lot of projects on board before the coronavirus pandemic hit the world.
With 4G LTE infrastructure approaching its limits in handling the increased requirements caused by modern mobile applications, the need for 5G had been identified by the IT Industry. However, all the plans that America’s giant telecom companies had to introduce 5G, are now on a big hold.
The Positive Side
Despite all these shocking figures of fall in revenues and a rise in unemployment, there are hopes for the future. The good news is that the economy cannot always stay like this.
Cooperating with the situation is the need of the hour but once this is all over, the situation of these industries is expected to rise significantly. With the travelling industry booming after lockdown will be over, the hospitality sector will also hit a rise. The IT industries will soon resume their projects and the economy will work hard to balance itself.