How has the financial management of small and medium hospitality businesses been coping with COVID-19?

Abstract

The outbreak of COVID-19 caused a worldwide shutdown and impact; as a result, industries that were constantly growing suffered significant losses and were forced to seek solutions and financial strategies to ensure continuity in the foreseeable future. This investigation focused on the integration of cash flow monitoring, budget control, risk management, e-marketing, and the risks and opportunities of investing in a COVID-19-affected market.

The study used an interpretivist methodology and conducted five qualitative interviews with participants, concentrating on their perspectives, experiences, and motivations to learn more about the phenomena.

The purpose of this investigation was to determine how finance managers and hospitality business owners use financial tools and what adjustments have been made to continue operations in a highly volatile market. Furthermore, the study sought to identify the competitive advantages of financial strategy in small and medium-sized hospitality businesses. The findings revealed that using the financial tools discussed in the study helps with business organisation, planning, and control. Small and medium-sized hospitality businesses can significantly benefit from financial tools in the same way that large corporations do, but the process requires knowledge and can be costly at times.

It should be noted that the elements that comprise the financial system have a high degree of control and planning, which can improve operations and generate more security and opportunities even in the face of a volatile market.