In the crazy age of the coronavirus, hotels have been deemed essential. But that doesn’t ensure smooth sailing for hotel companies or their employees. Although many essential services have seen a spike in demand, hotels haven’t participated in the surge as tourism is at a standstill all over the world.
Many hotels do not want to deal with increases in unemployment insurance. So they are trying first to cut the hours of their employees before laying people off.
However, bigger hotels are often faring so poorly—due to an apocalyptic loss in occupancy—that they have no choice but to lay off employees. Some establishments near Disney World are furloughing people left and right because the closing of the park has left some 1,000-room hotels at only 1 percent occupancy. At that rate, they can hardly afford to keep the lights on, much less continue to pay all their employees.
As for Las Vegas, many resort hotels have shut down because a huge amount of their money comes from the casino business. This requires larger gatherings of people to be successful. More than anything, they are basically gaming spaces with a hotel attached. Without gaming resorts, there is no point in staying open.
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