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
How Labor Shortages Can Impact Hotel Reviews and Long-Term Growth
Larry and Adam Mogelonsky | June 15, 2022
By Larry and Adam Mogelonsky Think broadly about the post-pandemic ‘revenge travel’ surge we hoteliers find ourselves in the midst of right now. After being cooped up for two years, people want to travel again. And not just plan a trip, but due to COVID-19 (read: mortality salience or #YOLO) many place a greater value on travel as a meaningful contribution to their lives. In stark opposition to this prospect of high occupancy is the lack of new staffers, which likely won’t end any time soon given a slew of forces beyond any hotel’s direct control. Together, this amounts to overworked teams and the possibility for service errors. ...
NYU Conference Takeaways: Despite Some Challenges, the Hospitality Sector Is Still Looking Good
Rod Clough | June 15, 2022
By Rod Clough The tale of the looming recession was mixed, with some forecasting a shallow, short-lived recession, and others expecting a more significant impact. The overall sentiment remains a positive one, and that cash flow growth should continue. Despite high inflation, other economic markers, such as consumer goods, mortgage default rates, and low unemployment rates, look positive. ADR will reach new highs in 2022, with further, albeit more muted, growth expected through 2023. With little push-back being seen in the market on higher ADRs, hotel owners are able to tap into this revenue source to combat higher operating costs, infla...
Americans Still Prioritize Vacations Amid Rising Economic Concerns, According to New MMGY Travel Research
MMGY Travel Intelligence | June 14, 2022
As COVID-19 concerns fade, 65% of American travelers intend to take a leisure trip in the next six months. KANSAS CITY, MO – Inflation, rising gas prices and other world events seem to be no match for the enduring allure of a vacation. According to the Portrait of American Travelers research from MMGY Travel Intelligence released this week, 65% of U.S. travelers intend to take a leisure trip in the next six months despite obstacles present in today’s travel environment. Aggregating data collected from more than 4,500 respondents, the quarterly report examines the travel intentions and behaviors of U.S. adults. “Even in the fac...
AHLA Statement on COVID-19 Travel Testing Requirements
AHLA | June 13, 2022
WASHINGTON (June 13, 2022) – American Hotel & Lodging Association (AHLA) President & CEO Chip Rogers released the following statement today after the Biden Administration announced it was lifting its requirement for travelers to test negative for COVID-19 before entering the U.S., beginning at midnight Sunday, June 12. “Today’s announcement is a significant win for hotels and the broader travel industry. AHLA consistently called on the Administration and Congress to lift this testing requirement, which was out of date and had a chilling effect on inbound international travel to the U.S. Lifting the requirement will make trav...
Accommodation Preferences After COVID-19: Back to Normal or a New Normal?
June 10, 2022
There is mounting evidence that consumer behaviors and preferences are largely returning to “normal” as concerns regarding COVID-19 continue to subside. An increasing appetite for travel, the return of city breaks and waning importance of cancellation policies are just a few indicators highlighting tourism recovery as well as a return to pre-pandemic tendencies. Throughout the pandemic, most forms of accommodation have been disadvantaged as consumers have sought to minimize their interactions with others when restricted travel was allowed. As such, short-term rentals is one sector that has benefitted to a degree during the ...
Paris Hotel Market: A Spectacular Start to the Recovery
Mathilde De Bona | June 8, 2022
By Mathilde De Bona, Sophie Perret Tourism in Paris was heavily impacted by the COVID-19 pandemic and travel restrictions, at a time when the market was recovering from terrorist attacks (2015/16), the yellow-vest movement (2018/19) and transportation strikes (2019). However, the strong government support combined with the city’s worldwide appeal have resulted in a dynamic rebound for the tourism sector. The easing of travel restrictions and successful vaccination rollout in France and across Europe have allowed a rise in tourist numbers from June 2021, resulting in a substantial market bounce in the second half of the year, in line with...
Support Builds for Repeal of Pre-Departure Testing for Inbound Air Travelers
U.S. Travel Association | June 8, 2022
WASHINGTON (June 8, 2022)—A bipartisan group of 38 mayors representing American cities and counties spanning Miami to San Francisco sent a letter on Tuesday to the Biden administration asking for the removal of pre-departure testing as a requirement for U.S. entry by air for vaccinated individuals. Mayors of Houston, Atlanta, Minneapolis and Philadelphia also sent separate letters to the administration with the same request, totaling 42 mayors. In the group’s letter, the leaders state: “American cities are still struggling to regain international visitors after more than two years of pandemic-related restrictions. In 2021, int...
Hyatt Shares Operating Update, Summer Travel Booking Trends, and Closes on Asset Dispositions
Hyatt Hotels Corporation | June 6, 2022
System-wide RevPAR Accelerates in May; Future Bookings Continue to Strengthen CHICAGO (June 6, 2022) - In conjunction with the start of the NYU International Hospitality Industry Investment Conference, Hyatt Hotels Corporation ("Hyatt" or the "Company") (NYSE: H) is pleased to share an update on operating results for May, summer travel booking trends, and confirmation of the closing of previously announced asset dispositions. “We are delighted that we closed on the last of four previously announced owned hotel dispositions. In total, these four dispositions generated $812 million in gross proceeds and demonstrate meaningful and e...
Revenge Travel in 2022: Are We Really Traveling With a Vengeance?
Gregg Rockett | June 6, 2022
By Gregg Rockett A recent CNN column explores the nature of ‘Revenge Travel’, a buzzword that has gained increasing attention in the media. The article ponders the term’s meaning and congruence relative to the true motivations of the travel market as travel restrictions become relaxed and more countries open to tourism. With that article as a backdrop, a commentary piece by columnist Mark Footer of the South China Morning Post takes issue with the term ‘Revenge Travel’. He uses the examples of ‘staycation’ and ‘bleisure’ travel as buzzwords that more accurately convey the trends these terms are meant to describe, a...
May Jobs Report: Leisure & Hospitality Remain 7.9% Below Pre-Pandemic Levels
U.S. Travel Association | June 6, 2022
WASHINGTON (June 6, 2022)—U.S. Travel Association Executive Vice President of Public Affairs and Policy Tori Emerson Barnes issued the following statement on the Bureau of Labor Statistics’ May employment report: “With only 84,000 jobs added in May, Leisure & Hospitality employment remains 7.9% below pre-pandemic levels, with 1.3 million of these jobs still lost. While many industries have now nearly or fully recovered and are posting job openings focused on growth, L&H is desperately seeking to fill jobs just to recover to where it was in 2019.”...
Europe’s Luxury Hotels Bounce Back From the Bottom
HotStats | June 2, 2022
Luxury hotels across Europe have made an about-face and are back to producing profit at the almost same rate as 2019, according to data from HotStats. It’s an extraordinary turn of events for a sector that saw its gross operating profit per available room (GOPPAR) plummet during the dark days of the global pandemic, hitting a historical low of-€43.21 in May 2020. Now, March 2022 GOPPAR of €66 is only €4 off its March 2019 number and, at €24.12 year-to-date, it is 187% higher than at the same period a year ago. It’s a striking comeback that is still not complete and more remarkable given the depths of where it came from. The ...
Will Hotels Evolve at the Extremes?
Larry and Adam Mogelonsky | June 1, 2022
By Larry and Adam Mogelonsky Travel recovery is getting started, but to keep the gravy train going hotels have to look not only at what the post-pandemic guest wants but also the customer two years, five years and a decade from now. How will our industry evolve? Have a good picture of this can inform capex investments, branding vision and any tech implementations to support those other two. One scenario that the two of us have been workshopping is that of a ‘barbell evolution’, where macro forces come to slowly shift hotels to both extremes – economy and limited service versus luxury and full service – with thin representation i...
The Time Is Now: White House Must Remove Pre-Departure Testing Requirement
U.S. Travel Association | June 1, 2022
Suffering U.S. Economy Needs a Boost in International Tourism WASHINGTON (June 1, 2022)—On Tuesday afternoon, senior leaders from U.S. Travel Association and Airlines for America had a meeting at the White House where they once again stressed the need for the Biden administration to end the pre-departure testing requirement for inbound vaccinated air travelers. After the meeting, U.S. Travel Association President and CEO Roger Dow issued the following statement: “It is long past time for the Biden administration to remove the pre-departure testing requirement for vaccinated air travelers to the U.S. While nearly all other U.S. indus...
Despite Global Pressures, April Hotel Profit Up
HotStats | May 31, 2022
The higher cost for goods is not yet wrecking traveler appetite. Despite record gas prices, ballooning airfares and crippling inflation roiling the globe, hotel performance remained widely steady, if not getting better, in April, with increases in both the top and bottom line. In the U.S., April gross operating performance per available room (GOPPAR) hit $96.08, which was 92% back to where it was pre-pandemic. Accounting for the rise was a strong top line that featured both growth in occupancy and average daily rate, with the latter outpacing where it was in April 2019, $5 higher on a nominal basis. Total revenue per...
Lodging Market Should Recover Fully by 2023
CBRE Group, Inc. | May 31, 2022
Drive-to and Leisure Hotels Continue to Perform Best Dallas – May 31, 2022 – CBRE is raising its forecasts of hotel performance for 2022 and beyond, based on Q1 2022 strength, continued slowing of construction activity, higher inflation and continued optimism about employment and economic growth. CBRE’s forecasts call for a full recovery in average daily rate (ADR) in 2022 and in demand and revenue per available room (RevPAR) in 2023. Despite headwinds from the Omicron variant, Q1 RevPAR reached $72.20, up 61 percent from year earlier. RevPAR growth was driven by a 39 percent increase in ADR)and a 16 percent increase in occupancy. ...
The Year of the Big Family Holiday: Brits Set to Spend Over £80bn on Family Holidays this Year
Hilton | May 27, 2022
LONDON, UK: 27 May, 2022 – As the worst effects of the pandemic pass, travellers are expected to make more considered travel choices. In fact, with over a third (37%) of the nation admitting they have not fully used their annual leave since before the pandemic, new research by Hilton (NYSE: HLT), reveals that Brits are prepared to spend an estimated 34% more on their holidays this year than pre-pandemic - an average total of £1,246 per person on travel, and an impressive £83.6bn as a nation this year. However, despite this willingness to spend, value remains key to UK holidaymakers as affordability ranks the top ‘must-have’ for ha...
Barnes Urges Action on Bills to Aid Recovery, Competitiveness of Travel Industry
U.S. Travel Association | May 27, 2022
WASHINGTON (May 27, 2022)—U.S. Travel Association Executive Vice President of Public Affairs and Policy Tori Emerson Barnes testified today before the U.S. House Subcommittee on Consumer Protection and Commerce of the Committee on Energy and Commerce in support of the Visit America Act (H.R. 6965) and the Travel and Tourism Act (H.R. 7820). Barnes pressed for passage of both bills, which are critical to ensuring the long-term competitiveness of the United States in the global travel market. The Visit America Act would establish an Assistant Secretary for Travel and Tourism position at the U.S. Department of Commerce, direct the Commerce...
Driving GOP During Inflationary Growth and Rising Labor Costs
Susan Furbay | May 25, 2022
By Susan Furbay High staff turnover has always been one of the biggest management challenges faced by owners and operators in the hospitality industry. But now, as the nation is experiencing record levels of inflationary growth, rising wages, and labor shortages, the hospitality industry is encountering extreme difficulty finding workers. So, how are hotel owners and operators managing rising labor costs and inflationary risk to drive their bottom line during these unprecedented times? Aggressive Revenue Management Unlike other real estate classes, such as office and residential buildings, where profitability is tied to multiyear leases,...
Survey: Gas Prices, Inflation Impacting Summer Travel Decisions More Than COVID
American Hotel & Lodging Association (AHLA) | May 25, 2022
WASHINGTON (MAY 25, 2022) – More than two years into the pandemic, Americans report that gas prices and inflation will impact their summer travel decisions more than concerns about COVID-19, according to a new survey conducted by Morning Consult and commissioned by the American Hotel & Lodging Association. Memorial Day weekend marks the start of summer travel season, a traditionally busy time for the hotel industry. And this year, nearly seven in ten Americans (69%) report being likely to travel this summer, with 60% saying they are likely to take more vacations this year compared to 2020-21. New concerns about gas prices and...
Getting Back to Getaways: 2022 Deloitte Summer Travel Survey
Deloitte Transportation, Hospitality & Services | May 24, 2022
Against the backdrop of a persisting pandemic, the Deloitte 2022 summer leisure travel survey explores Americans’ travel intent Eileen Crowley Michael Daher Peter Caputo United States United States United States Anthony J. Jackson Maggie Rauch Bryan Terry United States United States United States As the COVID-19 pandemic moves through unpredictable ups and downs, intent to travel continues to climb higher. Unhindered by continued news about variants or by rising airfares and hotel rates, travel intent has reached a level that would have been high befo...
Strength in Average Daily Rate Now Expected to Drive 2022 RevPAR Above 2019 Levels
PwC Hospitality Directions | May 23, 2022
Despite an initial pullback in the recovery timeline caused by a surge in infections from a new omicron variant of the COVID-19 virus in December and January, continued improvement in top-line metrics for US hotels is expected for the remainder of this year and next. While leisure travel continued to drive much of lodging’s demand in Q1, individual business travel and group business have started to emerge as we head into the warmer months. Strong leisure business is expected to cause demand compression over the summer, driving room rates and resultant RevPAR levels to new highs. If tensions ease in Ukraine and immunity levels continue to in...
Recent U.S. Occupancy Leaders Appeal to Both Business and Leisure Travel
STR | May 23, 2022
For the four-week period ending 14 May 2022, more than three-quarters of all U.S. hotel markets outperformed their comparable 2019 revenue per available room (RevPAR) on a nominal basis. Of 165 STR-defined U.S. markets, only 38 fell short of their 2019 RevPAR, which was a solid improvement from 52 underperformers in April’s “bubble” blog update. Industry RevPAR looks to be on steady footing; however, a look at RevPAR contribution shows a greater influence from average daily rate (ADR) as opposed to occupancy in many areas. As a result, we decided to focus in on occupancy for performance leader callouts in this month’s up...
Amadeus Data Alert: Memorial Day 2022 On Track to Exceed 2019 Hotel Market Performance
Amadeus | May 23, 2022
As the summer travel season starts in the US, top markets for travel during the Memorial Day holiday weekend reflect a broad range of climates and activities including resort areas in Hawaii and Florida, major city centers, and smaller communities in the northeast and west. According to Amadeus’ Demand360® data as of May 15, 2022, occupancy is currently at 51% for the United States Memorial Day holiday weekend, with guests arriving on Friday, May 27 and departing Monday, May 30. This is matched to hotel occupancy for the same time in 2019 and exceeds occupancy in 2021 (47%) and 2020 (11%). When we consider that booking lead times ar...
Tourism Tidbits: Getting Ready for the Family Vacation Season
Dr. Peter Tarlow | May 19, 2022
By Dr. Peter Tarlow Although most family vacations will not occur in the Northern Hemisphere until June - August, May is the month when families plan their vacations. The family vacation market is a huge part of the travel industry and in this period when families seek to get away after multiple lockdowns, the tourism industry would be wise to offer multiple alternatives, especially in this year of high inflation and transportation problems, especially in the world of air travel. Prior to the Covid pandemic lockdowns, tens of millions of families took family vacations and many of these people traveled with children under the age of 18....
