IHG Cuts $150 Million in Costs as Revenue Plummets
IHG has limited options at a time like this. With travel demand falling, it has to cut costs and hope that this will be enough to see it through the crisis.
Demand for hotel rooms is at record lows, the company behind InterContinental and Holiday Inn hotels said on Friday, as it announced $150 million of cost cuts to help cope with travel restrictions and lockdowns caused by the coronavirus pandemic.
Travel and leisure businesses have been among the worst hit by the virus outbreak, with hundred of billions of dollars in business trips and holidays cancelled as countries impose draconian restrictions to try to curb its spread.
InterContinental Hotels Group (IHG) said it expected the revenue it gets globally from hotel rooms (RevPAR) to plunge by around 60% in March, with steeper declines in markets that have gone into lockdown.
