Four Trends for Beyond Revenge Travel 2.0
Larry and Adam Mogelonsky | March 2nd, 2022
Although Pre-Pandemic Profitability Will Remain Elusive, the Industry Will Make Strides Toward Recovery in 2022
Fran Worrall | January 5th, 2022
U.S. Hotel Occupancy Falls Below 50% Mark
STR | October 30, 2020
HENDERSONVILLE, Tennessee—U.S. weekly hotel occupancy fell back below the 50% mark, according to the latest data from STR through 24 October. 18-24 October 2020 (percentage change from comparable week in 2019): Occupancy: 48.0% (-31.7%) Average daily rate (ADR): US$95.49 (-29.4%) Revenue per available room (RevPAR): US$45.83 (-51.8%) Aggregate data for the Top 25 Markets showed lower occupancy (43.2%) but higher ADR (US$99.81) than all other markets. Four of those major markets reached or surpassed 50% occupancy: Norfolk/Virginia Beach, Virginia (54.1%); Tampa/St. Petersburg, Florida (53.8%); Phoenix, Arizona...
174M Travel & Tourism Jobs Could Be Lost Due to COVID-19 and Travel Restrictions, Says WTTC
WTTC | October 30, 2020
Research reveals small yet positive job gains, driven by the return of domestic travel in a number of markets Already in present circumstances, 143m jobs will be impacted Worst forecast can be avoided if an immediate coordinated response is implemented London, UK: New figures from the World Travel & Tourism Council (WTTC) reveal that despite a slight improvement since June, a staggering 174m Travel & Tourism jobs could be lost in 2020 if barriers to global travel remain in place. The new figure comes from WTTC’s latest economic data, which looks at the punishing impact of COVID-19, as well as local and global travel restricti...
Case Study: Hotel Paso Del Norte Re-Opens as One of the First Autograph Collection Hotels Using Bipolar Ionization for Air Purification
Greenwood Hospitality | October 29, 2020
When the historic Hotel Paso Del Norte began a full-property renovation three years ago, the hotel’s leadership had a vision to restore the property to its former glory. In addition to completely new furniture, fixtures, and amenities in guestrooms and public areas, the historic hotel is now one of the first Autograph Collection hotels in Marriott International’s portfolio to make use of bipolar ionization to purify and sanitize air on-property at all times. The bipolar ionization system works differently from traditional air filtration systems, which gradually replaces air within a property over time. The system at work in the Hotel...
Support Grows for Hotel Industry’s Safe Stay; Former CDC, WHO Official, & Infectious Diseases Society of America Endorse Guidelines
AHLA | October 28, 2020
Washington (October 28, 2020) — Support for the American Hotel & Lodging Association’s (AHLA) Safe Stay initiative continues to grow with endorsements coming from leading scientists, physicians and public health experts in epidemiology and infectious disease. The new endorsements come from the Infectious Diseases Society of America, the Association for Linen Management which represents the personnel involved in the textile care industry, as well as a certified industrial hygienist and former infectious diseasesepidemiologist with the U.S. Centers for Disease Control (CDC) and Prevention and World Health Organization...
Summarizing the Financial Consequences of the Pandemic
Larry Mogelonsky | October 28, 2020
By Larry Mogelonsky, MBA, P. Eng. (www.hotelmogel.com) Is COVID-19 the Armageddon for the hotel industry? That’s the first question I asked Dr. Donald W. Wise, co-founder and senior managing director of Turnbull Capital Group. With over 36 years of investment banking experience in the hospitality industry, he and this firm have been involved in roughly $20 billions of advisory, consultation, note sales, preferred equity and debt placements, and transactional engagements on both the buy-side and the sell-side. Given our current state of affairs, it behooves all senior executives and aspiring hoteliers to know a bit about the behind-clo...
Hospitality Ventures Management Group (HVMG) Outperforms Industry Through Rapid Execution of Plan as Pandemic Quickly Spread
Hospitality Ventures Management Group | October 26, 2020
Company Shares Strategies Leading to Significant Outperformance for Stronger GOPPAR Results and GOP Percentage ATLANTA, October 26, 2020—Hospitality Ventures Management Group (HVMG), an Atlanta-based, private hotel investment, ownership and management company, today shared key elements of its strategy that led to significant industry outperformance in multiple metrics, according to STR data around expenses and operating margins. For the three-month period June through August 2020, HVMG delivered substantially greater GOPPAR (Gross Operating Profit Per Available Room) and GOP percentage than the industry and continues to outperform indu...
Pacific Countries: From the Highs to the Lows, Where Does Performance Stand Now?
STR | October 26, 2020
Countries across the world have seen various levels of impact over the last seven months due to the COVID-19 pandemic. So where exactly do Pacific countries stand now? We look at how performance has changed over the course of the pandemic. Australia Australia experienced its lowest occupancy and RevPAR levels in April, 19.8% and AUD23.59, respectively. ADR, on the other hand, was at its lowest a month later in May at AUD118.36. Performance has since grown in the country as restrictions have ultimately eased. The country saw its highest performance levels in July: occupancy (41.5%), ADR (AUD143.96) and RevPAR (AUD59.72). In August, however, ...
A Message to the Travel, Lodging and Hospitality Industry That May Save your Business
Frederick J. DeMicco | October 22, 2020
By F.F. Miles and Frederick DeMicco Ph.D., Professor, the Franke College of Business, School of Hotel and Restaurant Management, Northern Arizona University With our extraordinary downturn in hospitality and travel, I sought out a corporate business traveler, a frequent flyer, road warrior extraordinaire and someone in our global travel industry who occupies the C-Suite. With travel starting to spring back to life, especially for leisure travelers, I thought it would be a good idea to interview a frequent traveler to learn what life is all about today when flying, staying in hotels and renting cars, etc. Below reflects my interview wi...
As More Companies Let Employees Work From Home Permanently, What Is the Outlook of Business Travel?
Linchi Kwok | October 22, 2020
By Linchi Kwok When the pandemic hit the global economy in March, business travel was estimated to lose $820 billion in revenue. Under the best scenario, businesses were expected to reopen in late spring or early summer. As we entered into the summer, indicators showed travel and hospitality businesses were picking up, but we all knew travel recovery would not occur until people are taking business trips again. “Travel, as we knew it, is over,” concluded by Airbnb CEO Brian Chesky. Now in October, we still have not contained the coronavirus. To make it worse, new COVID-19 cases now surge again across the US and Europe. More co...
COVID-19 Recovery: How Hotels Can Reestablish Brand Trust
Dr. Rick Garlick | October 21, 2020
By Dr. Rick Garlick Fall is in full swing and as businesses continue to face myriad challenges related to COVID-19 and economic downturn, brand trust continues to stagnate across the travel, hospitality and leisure sector. As such, several behavioral and attitudinal shifts will have long-term impacts across the industry and cause recovery challenges as consumers resume travel – but there are also some bright spots on the horizon. Where does trust stand? The Magid data shows that, despite significant investments to assure travelers that various venues are safe, the needle is not moving. In April, the first wave of the study showed tha...
Study: In Era of COVID-19, Airlines and Airports Must Do More to Accommodate Stressed-Out Passengers
Florida Atlantic University | October 19, 2020
Personalized Profiles, Encouraging Messages Would Help Travelers Cope BOCA RATON, Fla. (Oct. 19, 2020) – With the coronavirus crisis dealing the travel industry one of the biggest blows in its history, a new study from researchers at Florida Atlantic and Florida Gulf Coast universities suggests that airlines and airports should be doing more to help passengers cope with stress. Airlines and airports need to design services and create marketing strategies for passengers dealing with stressful leisure travel, according to Ye Zhang, Ph.D., and Melanie Lorenz, Ph.D., both of FAU, and Jase Ramsey, Ph.D., of FGCU. The study, published i...
U.S. Hotel Development Cost Survey 2020
Luigi Major | October 15, 2020
By Luigi Major In 2019, the national lodging market reached new heights, with hotels reporting the highest occupancy and ADR levels ever recorded. Similarly, hotel development continued at a steady pace, with new hotels opening to a burgeoning market and new and exciting projects continuously being moved through the development pipeline. Since the start of the COVID-19 pandemic, government restrictions, travel and group cancellations, and an overall fear of traveling have caused an unprecedented drop in travel and tourism demand in the country and around the world, which has resulted in substantially lower occupancies and average rates. T...
Study Reveals Increasing Importance of OTA Travelers in Economic Recovery
Expedia Group | October 14, 2020
SEATTLE - A new Expedia Group study, in partnership with global research firm BVA BDRC, examines the contributions of online travel agencies (OTAs) to the US travel and tourism sector, the spending patterns of OTA travelers, and the role of OTAs in the hotel booking journey. The research points to the increasing importance of OTA travelers to propel economic recovery for the US travel industry. Key findings Traveler Preferences Traveler Behaviors Travelers are 57% more likely to book their travel through an OTA now than before COVID-19 Domestic OTA travelers spend 16% more per trip and 5% more on-property tha...
Consumer Survey Finds 70 Percent of Travelers Plan to Holiday in 2021
WTTC | October 14, 2020
Research provides data on issues industry needs to address to hasten recovery An overwhelming majority of US and Canadian travelers (99 percent) are eager to travel again, with 70 percent stating that they plan to take a holiday in 2021, according to a Travel Leaders Group survey of nearly 3,000 frequent travelers. The survey was conducted in September in conjunction with the World Travel & Tourism Council (WTTC), which represents the global Travel & Tourism private sector. Results indicate that 45 percent of respondents have already made plans or are starting to make finite plans for their next holiday, while 54 percent say the...
Tourism After Lockdown: Taking the Pulse of Travel
STR | October 12, 2020
STR’s Tourism Consumer Insights team has been keeping a close eye on consumer trends around the industry during this truly unprecedented time. The twists and turns of the COVID-19 pandemic have contributed to seismic changes in tourism, which has included the cessation of international travel for some countries. As a whole, we have witnessed long-lasting shifts in consumer behavior and attitudes, producing an increase in active travel, soaring levels of e-commerce and, yes, even ballooning rates of pet ownership. Keen to take the pulse and measure the sentiment of global travelers, STR conducted quantitative research in late August a...
Mixed-Use Development – The Most Sustainable Model for Hotels Going Forward
Mandeep S. Lamba | October 12, 2020
By Mandeep Lamba, Akash Datta, Dipti Mohan Mixed-use development, usually a planned combination of hotels, retail, office or residential space, is a fairly widespread concept globally with several such iconic projects around the world. In the last decade or so, the concept has been gaining ground in India as well, though the combination (two or more elements) of retail, office, and residential spaces have been more popular. However, as investors look to maximize returns through efficient land usage and optimal utilization of FSI, hotels have also been added to the mix. Mixed-use projects leverage the best of each asset class, while dive...
New Survey Reveals What Americans Are Missing the Most: Travel
Hilton | October 12, 2020
According to a new study released Monday by Hilton, 95% of Americans are missing travel right now – are you one of them? It’s not surprising, after six months of restrictions brought on by a global pandemic which led to working and learning from home and little change in scenery … day after day after day. What is surprising though? That within this time, 188 million Americans already feel a ‘travel memory deficit,’ leading to greater stress and the feeling of FOMO on lost or missed out upon special moments with loved ones. Traveling, it seems, is one of the great American pastimes that brings long-lasting joy, with nine in 10 r...
The Strategic Value for Having an Onsite Medical Clinic at Hotels
Adel Eldin | October 12, 2020
by Adel Eldin, MBA, MD Cardiologist, Tampa, Florida, Frederick J. DeMicco, Ph.D., Professor, and Shelly Rehav, MBA student, the Northern Arizona University, W.A. Franke College of Business The benefits of a medical clinic located within a resort or hotel property are well founded. With an aging society and with travel and tourism set to increase post COVID-19, partnering with an onsite medical clinic franchise could strongly benefit a hotel. There are numerous lodging and medical clinic joint models that currently exist and thrive. A medical clinic located on property, or in close proximity of a hotel, allows a domestic or international...
IHG® Hotels & Resorts Reveals New Data About the US Summer Vacation in 2020
IHG | October 12, 2020
‘Staycation’ was undoubtedly the travel buzzword of 2020. With travel restrictions limiting people jetting off to far-flung destinations for some of the summer months this year, Americans looked to explore what was on their very own doorstep more so than ever before. IHG Hotels & Resorts, which includes brands such as Holiday Inn, InterContinental, Crowne Plaza, Staybridge Suites and Kimpton, reveals new data about the 2020 U.S. summer staycation and the impact on hotel bookings. Brian Hicks, SVP Commercial and Revenue Management, IHG Hotels & Resorts commented on the findings: “People are as eager as ever to travel, but th...
Expedia Survey Reveals Americans Reached Their ‘Tripping Point’ Less Than 30 Days Into Lockdown
Expedia | October 9, 2020
SEATTLE, Oct. 8, 2020 -- Today, Expedia® reveals the latest phenomenon in pandemic travel behavior – the 'tripping point.' The tripping point is defined as the intense need for a break from the routine and the moment at which day-to-day responsibilities become too much and result in the desperate need for a change of scenery. For many adults, it would be an understatement to say the past six months or so have been a balancing act. Juggling new realities of work, school, household chores and errands can become monotonous, especially with little opportunity for a much-needed break. Through a survey of 1,000 adults aged 18-451, Expedia exa...
Baird/STR Hotel Stock Index Drops 7.1% in September
Baird | October 7, 2020
HENDERSONVILLE, Tennessee, and MILWAUKEE—The Baird/STR Hotel Stock Index dropped 7.1% in September to a level of 3,329. Year to date through the first nine months of 2020, the stock index was down 36.8%. “Hotel stocks declined in September, which mirrored the broader market’s pullback,” said Michael Bellisario, senior hotel research analyst and director at Baird. “After significant absolute and relative gains in August, the September declines were modest in comparison. Investors have become more focused on a potentially slower economic growth outlook, an expected rise in coronavirus case counts as colder weather approaches, and t...
COVID-19’s Impact on the Denver Lodging Market
HVS | October 7, 2020
Amid a worldwide pandemic, the lodging industry is facing a downturn that is greater than the past two lodging-market declines combined. During the Great Recession, Metro Denver’s occupancy fell roughly eight points from 65% in 2008 to 57% in 2009; this year, we forecast occupancy to drop from the 2019 benchmark of roughly 74% to 42%, reflecting a 32-point correction. Average rate declined from $106 in 2008 to $93 in 2009, a 12% drop; this year, we forecast ADR to fall 30% ($135 to $96). Denver – 2020-2023 Forecast Source: STR (Historical Years) and HVS (Forecast) Major factors contributing to our forecast are summarized as follo...
AHLA Statement on Stalled Negotiations on New Covid Relief Legislation
AHLA | October 7, 2020
WASHINGTON (October 7, 2020) – The following is a statement from Chip Rogers, president and CEO of the American Hotel & Lodging Association, on the stalled negotiations surrounding additional COVID relief legislation. “This is unacceptable and unconceivable with millions of Americans out of work and thousands of small businesses barely hanging on. It’s time for our leaders in Washington to put politics aside and chart a bipartisan path forward to help businesses and employees in the hardest-hit industries. Millions of jobs and the livelihoods of people who have built their small business for decades are just withering away becau...
U.S. Travel Expresses Extreme Disappointment on Relief Talks Ending
The U.S. Travel Association | October 7, 2020
WASHINGTON (October 7, 2020)—U.S. Travel Association President and CEO Roger Dow issued the following statement on the White House ending coronavirus relief negotiations: “Hardworking Americans whose livelihoods depend on travel and tourism cannot wait until after the election for relief. The reality is that small businesses in every pocket of America are shuttering—they needed relief months ago, which has been made clear week after week. “With millions of Americans suffering, it is woefully shortsighted to end relief negotiations. New data from Tourism Economics shows that, without immediate aid, 50% of all travel-supported job...
