Insurance Market Reports

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IMA provides a comprehensive review of hospitality insurance updates on the state of the market.

RISK in Focus

RISK in Focus is an overview to show recent risks in the workplace, on the jobsite and throughout the world.

A comprehensive review of hazards that contribute to the risks are spelled out to help you learn and avoid these hazards for yourself and your company.

 

This edition covers:

+ Maintaining Staffing Levels

+ Cyber Risk

+ Alcohol Liability

+ Slips, Trips + Falls

+ Water Damage, Mold + Related Risks

+ Rising Cost of Insurance for Commercial Vehicles

Markets in Focus: Hotels, Resorts, Casinos - Q4 2021

Markets in Focus

Since few industries were as severely impacted by COVID-19 as the travel and leisure sectors, many industry commentators thought it would take years for hotels and casinos to return to pre-pandemic levels. However, both industries have shown incredible resilience and reached January 2020 levels of occupancy, rates and revenue in July of 2021 (as can be seen in the chart on the next page). Despite the challenges, hotel and casino operators were able to evolve their businesses to safely attract guests and thus improve their economic positions as pent-up leisure travel demand had a positive impact on their bottom line.

Markets in Focus: Hotels, Resorts, Casinos - Q2 2021

Markets in Focus

While many industries faced challenges in 2020, few were impacted by COVID-19 quite like the travel and leisure industry. Per the American Hotel & Lodging Association, the impact of COVID-19 on the travel industry was nine times worse than that of 9/11. In particular, hotels, resorts, and casinos experienced their most devastating year in decades, resulting in historically low occupancy, low revenues, massive job loss, and closures across the country.

These industries were some of the first to be affected by the pandemic after travel was forced to a virtual halt in early 2020, and it appears they will be one of the last to recover, as global air travel is not expected to return to 2019 levels until 20241.

Despite this, casinos, resorts, and hotels are doing their best to move forward and create an inviting environment for when travel begins to return in 2021, and patrons become more comfortable as vaccines are more widely distributed. As such, business owners in this space will be keeping a close on their P&L statements as business slowly starts to improve. One key component they will be watching is their risk management and insurance costs, which have become a more significant portion of their budget.