How to survive a pandemic: The corporate resiliency of travel and leisure companies to the COVID-19 outbreak

Kaczmarek T., Perez K., Demir E., Zaremba A.

TOURISM MANAGEMENT, vol.84, 2021 (Peer-Reviewed Journal) identifier identifier

  • Publication Type: Article / Article
  • Volume: 84
  • Publication Date: 2021
  • Doi Number: 10.1016/j.tourman.2020.104281
  • Journal Indexes: Social Sciences Citation Index, Scopus, Periodicals Index Online, CAB Abstracts, Hospitality & Tourism Complete, Hospitality & Tourism Index, Index Islamicus, Psycinfo, Public Affairs Index, Veterinary Science Database
  • Keywords: COVID-19, Novel coronavirus, Tourism and leisure, Stock market, Corporate immunity, Policy responses, Containment, Closure, CROSS-SECTION, RISK, RETURNS


What protects travel and leisure companies from a global pandemic, such as COVID-19? To answer this question, we investigate data on over 1200 travel and leisure companies in 52 countries. We consider 80 characteristics, such as company financial ratios, macroeconomic variables, and government policy responses. Using regressions and machine learning tools, we demonstrate that firms with low valuations, limited leverage, and high investments have been more immune to the pandemic-induced crash. We also find a beneficial effect of stringent containment and closure policies. Finally, our results indicate that countries with less individualism may be better positioned to cope with the pandemic. Our findings have implications for regulatory bodies, managers, and investors concerning future pandemic outbreaks.