As the hotel industry navigates periods of lower demand from travelers, many hoteliers are optimistic about the prospects to boost revenues and capture more business and group travelers.
Only 17% of executives strongly agree that there will be a recession in the next six months - As executives see external risks ease, they are channeling their investments into transformation, technology and talent
U.S. positioned as largest contributor of retail tourism to GDP
Strong travel growth spurred rise in sector investment in 2022 Asia-Pacific and Africa see investment up 161% in 2022 over 2000
Reflecting continued improvement in business travel and groups, the Top 25 Markets showed higher occupancy and ADR than all other markets.
Hoteliers and travel experts speaking at the 2023 Hotel Data Conference said leisure travelers want to feel like they're getting a good value in their stay and that they're getting what they pay for.
The rate of growth in occupancy, average daily rate and revenue per available room decelerated considerably in Q2, with room rate fatigue effecting growth in the higher-priced hotel categories.
As seen in the most recent Construction Pipeline Trend Report for China from Lodging Econometrics (LE), the country’s pipeline stands at 3,666 projects/678,965 rooms. At the close of the second quarter, the total pipeline is slightly less than the all-time high of 3,711 projects/704,101 rooms set in the second quarter of 2022.
Silicon Valley historically experienced strong lodging performance driven by high-rated corporate demand during the week. Thus, the rise of remote work policies has had an impact on recovery. However, the presence of Big Tech, surging interest in AI technology, and expansion of the life-sciences sector are anticipated to drive growth in this market over the long term.
Domestic bookings are up 4% and international bookings are up 44%.
Global occupancy (excluding the U.S.) rose 5.3pts YoY to 73.4%, which was once again the highest post-pandemic level. ADR grew 11.4% YoY to US$156, resulting in a 20% gain in RevPAR.
Any individual who has stayed at a hotel recently can attest that technology has become ubiquitous at every stage of the guest journey. From the booking process to check-in to guest room controls to the post-stay follow-up, guest services are supported by technology through and through. This evolution has been progressing over the last decade but was significantly accelerated by the COVID-19 pandemic which called for contactless processes. Once implemented, these automations were here to stay.
National Associations led key meeting industries in top three markets
CBRE is reducing its forecast for hotel performance this year, as weaker-than-expected summer demand resulted in a shortfall in Q2 2023 revenue per available room (RevPAR).
The hotel market in Louisville, Kentucky, has experienced a slow recovery since the peak of the COVID-19 pandemic. While a copious amount of new supply over the past few years has slowed the recovery, ADR has grown steadily. The area will continue to be supported by bourbon tourism, the University of Louisville, and the Kentucky Derby.
Hotels in the United States saw general pressure on profit margins in the first half of 2023, with Gross Operating Profit (GOP) margin falling by 1 percentage point compared to the same period in 2022. A closer look at brand-scale performance reveals that the extremes were particularly affected: the luxury and midscale & economy segments exhibited the greatest year-on-year margin declines.
U.S. hotel performance declined from the previous week but showed mostly positive comparisons year over year, according to CoStar’s latest data through 12 August.
While wage negotiations are always at the center of hiring, recruitment and retention, hotel leaders said young employees are also being more direct with their expectations of a career trajectory in the industry.
According to Expedia, flight searches for fall are up 15%, and hotel searches increased 20% compared to fall 2022.
CBRE Lending Momentum Index’ Declines 5.4% From Previous Quarter
The current number of reservations being made to Portuguese hotels is 21% above 2019’s record-breaking volumes, and Portugal leads neighbouring Spain, France and Italy for comparative booking momentum.
Hotel demand growth declined 1.5% in June while short-term rental demand rose 14.3%, suggesting that short-term rentals may be taking share from hotels.
Surveys show that, even though Generation Z adults may not have reached their peak earning years, they may be more willing to spend money on leisure travel than their Gen X and Baby boomer peers.
I was invited to lead a session on traveler well-being at the recent GBTA meeting in Dallas. Such an interesting topic, as most of our customers now need to think about employee well-being standards while considering organizational goals and environmental impact.
The FIFA Women’s World Cup 2023 is approaching its conclusion with the third place and championship matches set for this weekend in Brisbane and Sydney, respectively. Supported by record-breaking attendance, hotels around Australia and New Zealand have received a much-needed performance boost during the usually quiet winter season.