Could a Covid vaccine provide a painful remedy for struggling brands?
A Covid vaccine could save jobs and kickstart the rescue of the hotel and hospitality sectors. But it will be a long road to recovery and it may involve a painful reckoning for some.
Struggling brands, particularly those in the hospitality sector, have been quick to recognise the promise offered by a Covid-19 vaccine. With growing optimism that a functional vaccine may be available by the new year, brands are already calculating their next moves.
Stock markets jumped at news last week that pharmaceutical giant Pfizer had seen its vaccine achieve effectiveness rates of 90% in testing. Hot on its heels is US company Moderna which yesterday (16 November) revealed tests of its vaccine have been nearly 95% effective.
Whitbread, owner of Premier Inn hotels and Beefeater restaurants, said it could more than halve the 6,000 redundancies it had planned as a result of the vaccine news and an extension of the furlough scheme.
A Covid vaccine does not mean the hospitality sector can simply bounce back from the biggest shock it has faced in living memory, though.