Covid-19 and small lodging establishments: A break-even calibration analysis (CBA) model

Manuel Rivera; Murat Kizildag; Robertico Croes

doi:10.1016/j.ijhm.2020.102814

Covid-19 and small lodging establishments: A break-even calibration analysis (CBA) model

Int J Hosp Manag. 2021 Apr:94:102814. doi: 10.1016/j.ijhm.2020.102814. Epub 2020 Dec 18.

Authors

Manuel Rivera¹, Murat Kizildag¹, Robertico Croes¹

Affiliation

¹ University of Central Florida, United States.

Abstract

The COVID-19 pandemic foiled the hospitality industry offering no clear insight as to what to expect regarding the emergence of possible new industry standards as likely corollaries of the pandemic. The accommodation sector is one of the most affected sectors in the hospitality industry, especially small lodging establishments incurring the most dramatic brunt of the pandemic's long-tail effects. This study employed a breakeven (BC) analysis to examine the pandemic's opportunity cost and the financial resilience efforts that SLEs should undertake to bounce back or bounce forward. The case study centers on the Superior Small Lodgings (SSL) of Florida, USA. The results suggest that the opportunity cost varies depending on the SLE profiles, and hence resilience approaches should consider heterogeneous business responses.

Keywords: CB analysis; COVID-19; Florida; Operational sensitivity; Recovery; Small lodging establishments.