Posted on April 22, 2020
How will Travel and Real Estate Change After Coronavirus?
Here’s What the Experts Have to Say
The overall experience will look and feel quite different once the world begins to reopen, but people can still count on the positive impacts of travel and real estate.
The outbreak of coronavirus and its rapid spread around the world have had an unprecedented impact on both. There are a few airlines still flying, including rescue flights to repatriate people to their home countries, many carriers have all but shut down for the time being. Real estate acquisition has significantly slowed as well for the moment.
In short, the travel and real estate industry has never faced panic, change, and disruption on this scale.
In search of insights about how coronavirus is likely to change the way we travel and buy real estate in the future, we have talked to experts in the fields of aviation, hospitality, cruising, finance, and even epidemiology. We have also reached out to our own clients to gain their perspectives about expectations of selling and buying real estate.
While some provided predictions and projections, the one thing that almost all of them said to expect is a lot more uncertainty for some time to come. Real estate is still a solid investment and depending on your needs and resources can be a safe haven for many in these difficult times.
Travelers need to focus on health for themselves and others.
Several doctors concur that the pandemic will force consumers to factor health concerns into their travel choices even more than before. They recommend checking verified apps like — Outbreaks Near Me — to take proper precautions before traveling to a new destination.
Full Service Realty D.R. cautions along with the experts against people heading into active hot zones, even if you’re immune, because you don’t know what kind of lockdown you might be subject to if cases suddenly increase upon your return. Thankfully, here in the eastern province of the Dominican Republic we have been relatively pro-active and diligent in our prevention and containment of the virus.
“Many countries, and even some U.S. states, now have mandatory requirements for visitors to isolate for two weeks. This should be factored into travel planning for the moment.” “If a coronavirus vaccine becomes available, depending on the safety profile, it would be worth considering even if you’re not venturing far from home.”
We do not recommend travel for anyone until these bans are lifted and the transportation industry demonstrates clear protocols to secure your safety while traveling. In the meantime, you can actively plan your strategy to locate an isolated or secure property in a Caribbean paradise that is sustainable in the worst of times.
Finally, experts state that everyone should start thinking about how their travel plans might impact the health conditions of the places they visit and or plan to live either part time or permanently. “As much as we think about our own health when we travel, we should have compassion through awareness that we may inadvertently bring the virus with us,”.
Air travel will restart slowly, domestically, and with social distancing.
Aviation experts expect that the travel industry, much like the rest of the economy, will rebound as various cities, states, and regions confront different challenges. “You can expect airlines to begin with flights out of their most important hubs and cities where public health conditions are best and demand is strongest,”.
“That means obviously that less choices for passengers as the number of airlines shrink and the number of flights are reduced. Passengers will also opt for more direct routings to avoid having to pass through extra airports on layovers.
“Once the all-clear is given, it is anticipated that public health officials will still encourage social distancing.
Airlines may also require proof of good health before allowing passengers to fly. “In terms of boarding, airlines might limit the number of people down the jet bridge at any given time,”
Most people will likely want to stick close to home for a while. That is also due, in part, to the economic impact on travelers’ wallets. Incomes have been hurt and disposable wealth damaged, so how it will play out is another part of the whole ‘what if’ situation we face.”
That might have some people considering flying private or charters for the first time. The travel industry is entering a two-year period where travelers won’t want to touch anything and will require space.
Crowd-free, hassle-free travel is the way of the future. Private aviation firms have seen a dramatic increase in interest from both personal and corporate clients for private plane charters with social distancing measures in effect.
Travel, hotels, property rentals and sales face slow times ahead.
“There will be several phases to the travel and real estate recovery, and it is all about adapting to demand. In the immediate term, with social distancing and travel restrictions, hoteliers should focus on the needs of their local community, assisting the medical community and local government to help with housing essential workers.”
If all goes well, experts say the U.S. hotel industry will be back at 70 to 80 percent of what it was before coronavirus by this time next year. However, there will be fewer hotels in operation, and many fewer hotels in development. Travelers might also see hotels opening only a fraction of the rooms they have and looking for technological solutions to replace staff and save on cash.
During both 2019 and 2020 to date, hotel occupancy was at a 40-year high. Even so, room rates remained relatively cheap. There will be room rate discounting to stimulate travel. During economic downturns, it normally takes hotel rates twice as long to recover to pre-downturn levels as it took them to fall to their lowest point. So, be on the lookout for deals for several months, if not years, to come.
Travelers and potential property buyers will likely consider staying in someone else’s residence rather than a hotel. Vacation rentals may be less negatively impacted, but hotels will be touting their cleaning standards and the dedication of their staff to ensuring guest safety and security. It will be much more difficult for Airbnb and other short-term rental groups to establish and enforce standards across thousands of independent hosts.
The local rental and real estate market in the eastern Dominican Republic is made up of thousands of individual owners who might decide to reenter the market at times of their own choosing.
By contrast, hotels will welcome back travelers the moment they are allowed to do so, and probably priced better than people have seen in years.
Travel Agents and Independent Hosts offer personalized services minimizing risk.
Travel agents and Independent hosts had become more of a niche in recent years, as most consumers simply booked travel themselves online. Many of those agents and hosts focused their practice on business and luxury accounts. Given the fast-changing nature of the current crisis and the difficulties some travelers encountered getting home, many people turned to the experts to have an advocate in their corner if and when things went wrong.
“Even people who didn’t originally book with travel advisors turned to them for help” during the coronavirus outbreak. The local advisory teams implemented action plans, that provided real-time updates from operators on the ground as well as State Departments and the CDC.
Travel and Independent Host Advisers On-Site
“In a post-COVID world, people will now value the local experts for their connections and guidance that go beyond destination and product expertise.
Having a real-life person at the destination location to assist [you] underscores the significance of human connection and the reassurance of knowing someone has your back locally,”
Full Service Realty clients are receiving just that from our team. Contact us today to establish the local connection you can count on. From the moment you plan on leaving, until you return or relocate here as an expat.
We look forward to answering all your questions.