The Indian hospitality and tourism industries, major economic growth drivers and employment generators, have been greatly affected by the outbreak of the COVID-19 pandemic. In FY 2020, the Indian tourism sector created 39 million jobs and contributed nearly US$194.3bn, or 6.8%, to India’s gross domestic product. The purpose of this study is to focus on ranking 22 listed hotels and 9 listed travel agencies in India based on their performance across 14 selected financial parameters in both the pre-COVID-19 year ending in March 2019 and the post-COVID-19 year ending in March 2021 to understand how the pandemic affected their businesses.
This research proposes to analyze the impact of the COVID-19 pandemic on the financial performance of 22 listed Indian hotels and 9 listed travel agencies evaluated over 14 financial parameters using a pipeline of two recently developed multicriteria decision-making techniques, method based on the removal effects of criteria (MEREC) and grey-based combined compromised solution (CoCoSo). First, the criteria weights are objectively determined using MEREC, and then the financial performances of the selected companies in both the hospitality and tourism industries are separately assessed using CoCoSo to get their overall performance score, based on which the companies are ranked in order of preference.
It was observed that Westlife Development, Lemon Tree Hotels, Indian Tourism Development Corporation, Royal Orchid and Country Club performed significantly poorer than their peers in the aftermath of the pandemic, whereas EIH, Advani Hotels and Resorts and TGB Banquets performed relatively better. Travel agencies Easy Trip and International Travel House performed particularly poorly because of the pandemic, but VMV Holidays performed relatively better in FY 2021.
The findings of the analysis will aid portfolio construction, corporate investment decisions, competition research, government policymaking and industrial analysis.
The proposed model is novel because it fills the research gap in the application of the integrated MEREC–CoCoSo method to study the impact of COVID-19 on the hospitality and tourism sectors in India.
Research work is original and entirely funded by the authors themselves.
Ghosh, S. and Bhattacharya, M. (2022), "Analyzing the impact of COVID-19 on the financial performance of the hospitality and tourism industries: an ensemble MCDM approach in the Indian context", International Journal of Contemporary Hospitality Management, Vol. 34 No. 8, pp. 3113-3142. https://doi.org/10.1108/IJCHM-11-2021-1328
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