Worldwide: Independent branded business valuation consultancy Brand Finance has simultaneously released its Brand Finance Leisure & Tourism 10 2020 ranking and Hotels 50 2020 report, in which it says brands could lose up to 20 per cent of their cumulative value as a result of the Covid-19 pandemic.
In the first ranking, Brand Finance ranked the top ten most valuable brands in the wider global leisure and tourism industry and revealed the extent to which they may be impact by the coronavirus.
The piece highlights Airbnb as the most valuable brand in the leisure and tourism space, after it reached a pre-pandemic brand value of US$10.5 billion.
The company has been viewed as a notable rival to traditional hotel brands since it launched back in 2008 in San Francisco, when co-founders Joe Gebbia and Brian Chesky initially came up with the idea for AirBed & Breakfast as a “couch-surfing” service. However, similarly to the other major booking platforms and OTAs, Airbnb has not been immune to the damaging effects of the global lockdown, and was recently forced to trim its workforce by 25 per cent.
Brand Finance, though, remains optimistic for Airbnb’s future post-pandemic, provided that homeowners continue to list their homes through the site [either through short- or mid-term stays] and offer the unique experiences and adventures that it promises.
It said: “Despite its business operations grinding to a halt, Airbnb is in a relatively good position to recover from the crisis as the economy slowly re-opens, likely to be favoured by holiday-goers looking for “staycation” options in their own countries.”
Brand Finance director Savio D’Souza said: “It is fairly obvious that the leisure and tourism industry is going to take a big hit from the coronavirus outbreak as varying levels of lockdown are being imposed on nations globally – Brand Finance’s analysis demonstrates that leisure and tourism brands could lose up to 20 per cent of their brand value.
“As with most sectors, however, the damage that will ensue on these brands will greatly depend on how long the pandemic engulfs the world, when borders are opened and how well brands can respond and adapt to the changing market,” he added.
The key findings in the Brand Finance Hotels 50 2020 report were as follows:
- The hotels sector has been heavily impacted by the Covid-19 pandemic and brands could lose up to 20 per cent of cumulative brand value, equating to US$14 billion
- Hilton remains the world’s most valuable hotel brand, up by 35 per cent
- Mercure is the fastest-growing brand in the ranking, following a 57 per cent growth
- Premier Inn was named the world’s strongest hotel brand, with a Brand Strength Index [BSI] score of 89.1/100