Airlines and hotels are badly hit by COVID19 pandemic. Flybe of the UK, Virgin Australia and Trans States Airlines (USA based) are among the airlines which have ceased to operate. Local airlines AirAsia and MAS too have incurred a huge loss due to the pandemic. Similar fate is befalling hotels worldwide.
In less than 150 words, discuss whether airlines and hotels that the operating internationally should consider working together with their rivals (using JV or strategic alliance) or is it better for them to continue operating individually.
Yes the pandemic has affected airline and hotels very badly. They have been shut for such along period at the same time the new normal is also posing several challenges. The challenges are not limited to only finance but also psychological. But at the same time we should not generalise the situation. I think when you have to deal with such a pandemic and have a existence crisis that lead to closer of the organization and put a question mark on the bread and butter of several people we should avoid competition among ourselves and go for different type of strategic alliances which suit the situation. It is not the time to compete but to cooperate.
The strategic alliances and joint venture have their own merit and dmerits but at this time it is about reviving industry and allowing the new normal so that everyone can be benefited. So it would be rational to go with each other rather than continue to operate individually.
Covid will be there for considerable time and the challenges are also there and we have to find the way .
Airlines and hotels are badly hit by COVID19 pandemic. Flybe of the UK, Virgin Australia and...