Top 5 Industries that Hit a Low in the Service Sector

COVID-19 Crisis: Top 5 Industries that Hit a Low in the Service Sector

Coronavirus has had a devastating toll on human lives, with cases continuing to grow at a steadfast rate. Looking at the ongoing situation, a great economic meltdown seems inevitable. Certainly, there are industries that have managed to keep themselves afloat, given how efficaciously they are operating remotely even during the crisis. However, some industries, especially those in the services sector, have had to pay a heavy price, with customers turning their back towards them.

Enlisted Below are the Industries Worst Hit by the 2019-nCoV Pandemic:

  1. Aviation:
    The spread of the novel Coronavirus has sent the aviation industry crashing. People have dropped their plans to travel in the wake of the COVID-19 pandemic, particularly after reports of international travelers being some of the earliest persons to be affected by the disease. Statista reports that, during the week of May 4, 2020, there was a 69.9% decline in the number of scheduled flights across the globe, as compared to May 6, 2019.

    This has, in turn, severely limited the air cargo capacity, as a massive load of goods used to be shipped by passenger aircraft. According to the International Air Transport Association, the industry may lose more than $250 billion worth of revenue this year, and estimates it would take at least three months for recovery. On the bright side, to compensate for the loss, freighter aircraft and drones are being mobilized to ensure the effective delivery of goods.

  1. Transport:
    With the government putting a stop on several modes of public transport, this sector has been one of the worst-hit. The decision was taken to discourage large public gatherings, which can cause a faster spread of the virus. Data by Credit Suisse suggests that the Indian Railways is estimated to lose around Rs 25,000 crore owing to the move.

    Several airlines drastically brought down the number of operational flights, the foreign-bound, in particular. The Emirates, Cathay Pacific, and Delta Airlines are some of the big names that had announced temporarily halting almost all of their operations in March.

    The movement of goods has also been affected due to the halting of transportation systems. However, several companies delivering essential items are taking precautionary measures; they have come up with the concept of ‘contactless delivery.’ Besides, they are also ensuring that the items are properly packaged to avoid contamination.

  1. Travel & Tourism:
    The gravity of the situation has been a major setback for the travel & tourism industry. Its effect will be felt not only in regions that are popular holiday destinations, such as Europe, but also in Asian countries, given their well-established medical tourism sector. The World Travel and Tourism Council warns that the pandemic could lead to a loss of 50 million jobs in this industry, globally. The impact could be felt even after the affected regions recover, as people may still be wary of visiting these places.
  1. Food Service & Hospitality:
    The masses have been paying particular attention to hygiene, and this has had a negative toll on the food & dining industry. This is because the people are still apprehensive about the precautions taken by restaurants when it comes to the preparation of food items. The hygiene practices followed by these outlets may not match people’s expected standards, owing to which, they have been avoiding to consume outside food in the light of the situation. Thus, home-cooked, as well as shelf-stable food, are becoming the preferred option.
  1. Automotive:
    The growing spread of the Coronavirus paints a grim picture for the automotive industry. Several auto manufacturers halted their operations in March, giving a big blow to the sector. The past few weeks have seen a major decline in the number of unit sales, with the steep fall in the number of customers visiting showrooms. This year, the Geneva Motor Show, scheduled to take place in March, was called off, keeping public safety in mind. China, the world’s largest auto market, has begun to resume its operations after a prolonged lockdown in some of its regions. However, several nations have become reluctant towards importing their automotive parts from the country.

Some of the affected industries are sure to gradually pick pace once things normalize. However, areas like tourism and hospitality do not fall under the essential services category, and may take a long while to redeem themselves. Customers form the backbone of these industries, and only their involvement will help these sectors restabilize. Thus, it can be ascertained that the widespread malady has deeply impacted the customer psyche, and the road to recovery seems long.

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