Using the Labor Data from Hotel Effectiveness to Minimize Costs and Turnover
Adam and Larry Mogelonsky | January 11, 2023
Four Creatively Destructive Forces for the Hotel Industry
Larry and Adam Mogelonsky | July 13, 2022
Hotel Recovery
Tourism After Lockdown: A New Standard of Accommodation Preferences?
STR | August 31, 2021
Despite continued challenges due to the Delta variant, many countries around the world, thanks to successful vaccination programs, have started to relax travel restrictions and social distancing requirements. As a result, more travelers can now explore beyond their locality. But, as restrictions have relaxed and different parts of the world have become more accessible, what changes can be seen in consumer accommodation preferences? To answer this and other questions as COVID-19 continues to disrupt travel, STR’s Tourism Consumer Insights team has kept a close eye on tourism trends throughout the pandemic. In this recent wave of re...
Hotel Profit Climbs Higher, but Could Delta Derail It?
HotStats | August 31, 2021
Global hotel performance is improving month by month. That’s the good news. The more pressing concern is if it will remain that way. The hotel industry remains fragile, dodging each and every new impediment thrown its way. The newest snag has been the Delta variant, which has caused COVID cases to spike in many areas and thrown a wrench into the gradual rebound. Just this week, the European Union recommended that Americans be banned from nonessential travel to its member states after a rise in case counts in the U.S. This as the U.S. remains off limits to most European travelers. Still, the hotel industry presses forward. U.S. ...
India’s Different, Second Recovery
STR | August 30, 2021
India’s progressive approach to vaccinations has led to an increase in travelers and hotel demand, especially in the leisure segment. Beyond the noticeable improvement, however, the country is showing a different trend in which markets are regaining occupancy. As noted in a recent press release, India’s recovery after the first COVID-19 wave was concentrated in leisure destinations such as Goa and Udaipur. But in this latest round of recovery, heavily populated markets and metro cities such as New Delhi and Mumbai have seen much improvement. Performance timeline India’s monthly occupancy reached a pandemic-era high in...
Upholding Traveler Confidence – the First Step in the Road to Recovery
Mandeep S Lamba | August 23, 2021
By Mandeep S Lamba, Dipti Mohan Traveler confidence is improving post the second wave, renewing hopes of a recovery for the travel and hospitality sectors. Domestic aviation traffic has been steadily increasing month after month, growing by 47% in June 2021 (compared to May 2021) and 61% in July 2021. The surge in demand has even prompted the ministry of civil aviation to increase domestic airline seat capacity to 72.5% of pre-COVID levels from 65% earlier. The aviation industry has gone to extraordinary lengths, especially after the second wave, to re-establish passenger confidence and reassure them that it is once again "safe to fly"...
ALIS in Wonderland
Jon Peck | August 23, 2021
By Jon Peck I recently returned from the ALIS (Americas Lodging Investment Summit) conference in Los Angeles, and it felt a little falling down the rabbit hole for two reasons: 1) It felt strange (but energizing) to be around so many people again. 2) The high-quality slate of presenters was generally upbeat and optimistic when I expected to see despairing looks after more than a year of jaw-dropping RevPAR’s and ongoing forbearance discussions (and pleading) with lenders. One of the more memorable quotes from Alice in Wonderland was by the Queen who quipped, “Why sometimes I believe as many as six impossible things before brea...
Tourism After Lockdown: Current Travel Barriers
STR | August 19, 2021
Regions around the world continue to see increased pandemic-related challenges, with the situation varying greatly by country. Fortunately, more than 4.6 billion doses of coronavirus vaccines have been administered in more than 190 countries, providing the tourism and hospitality industry a much-needed confidence boost, especially during the current summer months. However, with the increase in cases in many parts of the world resulting in new and extended restrictions, as well as the emergence of new virus variants, predicting future travel demand remains challenging. Are the twists and turns of the COVID-19 pandemic continuing to infli...
Asia Pacific: Hotel Performance Ups and Downs
STR | August 16, 2021
The Asia Pacific region has seen increasing challenges through the first seven months of 2021, with situation varying greatly by country. While India has been steadily recovering from its latest outbreak, Australia and Indonesia are now facing new restrictions. Mainland China, which was already at 2019 performance levels, has seen new cases arising and performance dipping. Southeast Asia has been mostly quiet, but there is hope in the Phuket Sandbox program, which allows vaccinated foreign tourists to enter the island without the same level of restrictions as those unvaccinated. Continued diversity Although Asia Pacific ...
Visiting Friends and Relatives Will Be a Driving Force Behind Travel’s Recovery
GlobalData | August 13, 2021
A desire to reconnect with family and friends after a year of stringent lockdown measures due to COVID-19 is likely greater than a leisure getaway in 2021, and therefore its power should not be underestimated in travel’s recovery, says GlobalData, a leading data and analytics company. Johanna Bonhill-Smith, Travel & Tourism Analyst at GlobalData, comments: “GlobalData’s forecasts suggest that visiting friends and relatives (VFR) travel will experience higher growth, with a 17% compound annual growth rate (CAGR) between 2021-25, compared to leisure, growing at a 16.4% increase between the same time period. While VFR ...
STR & TE Lift 2021 U.S. Hotel Forecast, Lessen Growth Projections for 2022
STR | August 12, 2021
NASHVILLE — August 12, 2021 —Just released at the 13th Annual Hotel Data Conference, STR and Tourism Economics have upgraded the U.S. hotel forecast for 2021 as a whole and lessened growth projections for 2022. Additionally, full recovery of demand remains on the same timeline for 2023, while revenue per available room (RevPAR) is projected to surpass 2019 levels in 2024. “Rather than improved expectations for the coming months, our upward revision for 2021 more reflects the surge in demand that has already occurred as well as room rates hitting an all-time high on a nominal basis,” said Amanda Hite, STR’s president. “As we h...
A Small Hotel on the Frontlines With the Delta Variant
Larry and Adam Mogelonsky | August 11, 2021
By Larry and Adam Mogelonsky The delta variant is slowly but inevitably absorbing the news cycle heading into Autumn 2021 as cases swell across the world and governments take pre-emptive measures to stop a fourth wave of COVID-19 from triggering another round of economically harmful lockdowns. Even though all of us yearn for this pandemic to be over, sadly we’re still very much in uncharted water. Given this uncertainty, all hoteliers can really do is react and pivot as quickly as possible. Here is one such case study we’ve been authorized to report upon so that you can see how a small hotel handles the situation on the ground and i...
AHLA Secures Changes to Hotel Loan Program, Up to $2 Million Per Property
AHLA | August 11, 2021
WASHINGTON – August 11, 2021 – The American Hotel & Lodging Association (AHLA), the Biden Administration and the U.S. Small Business Administration (SBA) collaborated over the last several months to expand and improve the SBA’s Economic Injury Disaster Loan (EIDL) program for the hotel industry, which was heavily impacted by COVID 19. The ongoing dialogue led to an increase in the cap on total loan amounts and a waiver of affiliation rules to ensure hotels can benefit from long term, low interest rates. AHLA has been working with Biden Administration and SBA officials for months to secure the changes, which would directly bene...
STR: Australia Hotel Occupancy on a Steep Decline Amid Latest COVID-19 Lockdowns
STR | August 6, 2021
LONDON — August 6, 2021 — After being one of the highest-performing countries during the early portion of 2021, Australia’s hotel occupancy has been on a rapid decline amid the latest COVID-19 lockdowns across the country, according to data from STR through 1 August. “New and extended restrictions amid the latest outbreaks have undoubtedly affected performance in recent weeks,” said Matthew Burke, STR’s regional manager for the Pacific region. “Although winter is likely a precipitating factor for some of the decline, these new restrictions across state borders have meant that a lot of travel is simply not possible. We noted ...
Knowland Reports U.S. Meetings and Events Volume Growth of 42.1 Percent for July 2021
KNOWLAND | August 5, 2021
Major meeting markets of Chicago, Orlando and Washington DC show top meeting growth indicating the start of the rebound for flagship event cities ARLINGTON, Va. — August 5, 2021 — Knowland, the world’s leading provider of data-as-a-service insights on meetings and events for hospitality, today released monthly meetings and events data for July. The numbers reveal that July U.S. group meetings volume increased 42.1 percent over June 2021. The average number of attendees per event continues with growth patterns exceeding the same time frame in 2019. Each month this number has increased as people become more comfortable meeting in larg...
Tourism After Lockdown: Temperature Check on Travel
STR | August 4, 2021
The prospects for a swift tourism recovery have been dealt a blow in recent months as the Delta variant has spread rapidly across many parts of the world. While vaccination rates have continued growing in most developed countries, rising COVID-19 cases have forced some governments to reimpose restrictions or, at the very least, slow plans for reopening their economies. With summer holiday season now upon us, there are growing calls for proof of vaccination and continued uncertainties around travel guidance and requirements in many parts of the world. With this in mind, STR set out to examine current attitudes among global travelers. An ...
2021 Is Halfway Complete. How Far Has the Hotel Industry Made It Back?
HotStats | August 2, 2021
Gauging the global hotel industry’s recovery is a lot like poker: you play the hand you’re dealt as best you can and you never know what the next one will bring. Just when we thought we might be out of the woods, an uptick in new cases, the Delta variant and fervent discussion over the vaccinated and unvaccinated have conspired, resulting in the return of masks in some jurisdictions and worry around the globe that this pandemic has still a ways to go. I attended the Americas Lodging Investment Summit (ALIS), in Los Angeles, last week, and—though optimism and rosiness tend to permeate industry conferences—in private, attendees ex...
New Research Reveals Price No Longer Primary Driver of Travel Decisions
Expedia Group | July 28, 2021
SEATTLE — July 28, 2021 — New research from Expedia Group reveals shifting views on travel, including positive sentiment on vaccine passports, increased budgets, and an enduring demand for safety and financial security. The Traveler Value Index examines the views of 8,000 people in eight countries to understand their values and expectations as the pandemic becomes more controlled in many parts of the world. “As vaccination rates rise and borders open across the globe, people are ready and eager to travel. However, the months of uncertainty are weighing on their travel decisions and shifting the conventional belief that price is the ...
Pandemic in the Rearview: Nashville’s COVID-19 Impact and Recovery
HVS | July 27, 2021
The COVID-19 pandemic was an unprecedented setback in Nashville’s growth, particularly within the lodging, convention, and tourism industries, similar to trends across the nation. According to STR, occupancy levels declined by 44% in 2020, while ADR contracted by 30%. This culminated in the lowest hotel performance metrics since STR began collecting data, with RevPAR dropping an extraordinary 61% in 2020. Full-service downtown hotels realized more precipitous drops in performance; occupancy levels plummeted to a low of roughly 27%, reflecting a 66% drop from 2019. ADR for these hotels contracted less substantially, ending the year down 17....
STR: U.K. Leading Europe in Hotel Occupancy Recovery
STR | July 26, 2021
LONDON — July 26, 2021 — The U.K. continues to lead Europe in hotel occupancy with four straight weeks above 60% in the metric, according to STR data through 18 July. “Demand is almost exclusively leisure-driven as the U.K. has benefitted from a successful vaccination program, a phased reopening and improved travel sentiment overall,” said Thomas Emanuel, STR’s Director. “Other countries are showing improvement in recent weeks for those very same reasons, but this is still far from a normal summer in Europe.’ The U.K.’s highest weekly occupancy level (63.5%) came during 12-18 July, but that was still significantly lower...
U.S. Construction Pipeline Continues Along the Road to Recovery
Lodging Econometrics | July 26, 2021
PORTSMOUTH, NH – July 26, 2021 – At the close of 2021’s second quarter, analysts at Lodging Econometrics (LE) report that the total U.S. construction pipeline stands at 4,787 projects/598,111 rooms, down 14% Year-Over-Year (YOY) by projects from Q2 2020’s 5,582 projects/687,801 rooms. This decline in pipeline totals YOY is largely a result of projects that were delayed in the under construction phase of the pipeline as a result of COVID, now having exited the pipeline and opened. During the first and second quarters of 2021, the U.S. opened 472 new hotels with 59,034 rooms. LE is forecasting another 450 projects/51,754 rooms to ope...
U.K. Leading Europe in Hotel Performance Recovery
STR | July 23, 2021
The U.K. continues to lead Europe in hotel performance recovery, due almost exclusively to domestic demand. In this latest piece, we take a quick look at the U.K.’s recent performance timeline as well as occupancy on the books for the coming months as the country further eases restrictions. Green shoots as hotels reopen Due to reopening, along with an assist from the summer half-term holiday (31 May-4 June), U.K. hotel occupancy came in at 43.1% in May 2021. That was up from May 2020 (23.0%) but substantially below May 2019 (78.9%). Because of the pandemic impact on 2020 data, STR is using 2019 as the recovery benchmark....
Five Ways Tech Builds the Next Stage of Local Authenticity for Hotel
Larry and Adam Mogelonsky | July 21, 2021
By Larry and Adam Mogelonsky Coming out of the pandemic, guest demands have irreversibly changed. They don’t want cookie-cutter rooms; they want experiences. This harks back to the push over the previous decade to make our properties more ‘locally authentic’. Now, with lean teams and skeleton crews, the only way to effectively meet this demand is through technology. For the post-pandemic travel landscape, local authenticity means more than just a cursory immersion in the arts, culture and heritage of one’s locale. It also equals peace of mind because, in light of the residual anxiety over COVID-19, guests need to feel as though ...
Recruitment, Retention and Effective Management Become Crucial for Post-Covid Hotel Sector
HVS | July 20, 2021
London - July 20, 2021 - The ability of hotel companies in the UK and Europe to attract and retain staff has never been more crucial as a combination of new immigration policies making it more difficult to employ foreign workers and the on-going impact of covid continue to threaten staffing levels. Attendees of the latest webinar from global hotel consultancy HVS, restructuring specialist AlixPartners, lawyers Bird & Bird, and EP Business in Hospitality heard a lively discussion earlier today [20th July] on the hotel sector’s ability to recruit and retain staff, with 75% of attendees admitting to running at between 20%-25% fewer...
U.S. Lodging Demand Forecast to Return to Pre-Pandemic Levels by Fourth Quarter 2023
CBRE Group, Inc. | July 20, 2021
Dallas, TX – July 20, 2021 – Based on stronger than expected performance during the first quarter of 2021, plus encouraging economic and vaccination news, CBRE Hotels Research forecasts U.S. lodging demand will return to pre-pandemic levels by the fourth quarter of 2023. The strength in lodging demand will support pricing, but occupancy gains will be somewhat offset by new supply, as fewer development and conversion projects were side-lined than previously forecasted. As a result, the recovery in occupancy will not occur until the fourth quarter of 2025 due to greater supply growth during the 2020 – 2022 period than coming out of pr...
Reports: Nearly 500,000 Hotel Jobs Won’t Return by Year’s End, Room Revenue Will Be Down $44 Billion From 2019
AHLA | July 20, 2021
Findings Come as Hoteliers Meet with Congress to Call for Aid Download Reports Here and Here WASHINGTON – July 20, 2021 – Midway through 2021, a new report and state-by-state job loss breakdown released by the American Hotel & Lodging Association (AHLA) find that while leisure travel is starting to return, the hotel industry’s road to recovery from the pandemic is long and uneven, with urban markets disproportionately impacted. Industry projections have improved since January with the uptick in leisure travel, but the industry remains well below pre-pandemic levels. Key findings include: More than one in five d...
