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
Through August, Greater Boston Lodging Market Ranks as the Hardest Hit by Pandemic
Sebastian Colella | October 6, 2020
By Sebastian J. Colella The Greater Boston market has experienced a 71% decline in room revenue through August when compared to the same time last year, the largest decline of all top-25 markets according to STR. Hotels in Boston and Cambridge, as well as those in the Greater Boston area, began to feel the effects of the ongoing pandemic in early March, before many markets around the country. Declines in lodging demand showed improvement over the summer months as there was an uptick in leisure travel, however, this began to slow towards the second half of August. Despite this slight boost, lodging demand was still down 70% and 62% in July ...
DCF Is the Most Appropriate Method of Hotel Valuations, Especially During the COVID Era
Akash Datta | October 5, 2020
By Akash Datta, Dipti Mohan In a market like India, where land most often than not is mis-appropriately valued resulting in exaggerated project costs and hotel transactions are limited in number, the only viable methodology that remains relevant especially in the current uncertain & volatile market scenario is that of Discounted Cash Flows (DCF). Moreover, the current pandemic has had an unprecedented impact on the hospitality sector, with hotels being temporarily closed and the sector witnessing all-time low performance metrics, by the virtue of which, assessing the value of a hotel on current income fails miserably. Hotels are ext...
FAU Expert Insists Deep Price Discounts Now Will Set Bad Precedent for Hotels After Coronavirus Crisis Ends
Florida Atlantic University | October 5, 2020
BOCA RATON, Fla. (Oct. 5, 2020) – Hoteliers are bracing for a tenuous tourist season as the fallout from the COVID-19 recession lingers, but deep discounting should not be part of the recovery playbook, said Peter Ricci, Ed.D, director of the Hospitality and Tourism Management program in Florida Atlantic University’s College of Business. Ricci contends that hotels should keep rates what they were prior to the pandemic and instead institute a bare-bones operation that includes reduced staffing and expenses with only a small percentage of rooms available to reserve. “This will maintain brand integrity and the quality expectations wi...
Sacramento Most Expensive U.S. City for Hotels, Survey Shows
Cheaphotels.org | October 1, 2020
According to the latest survey by Cheaphotels.org, Sacramento is currently the most expensive city in the United States for hotel accommodations, This year's results, however, were heavily skewed by the COVID-19 pandemic. The survey compared hotel rates across 50 urban destinations in the U.S. Average rates for the least expensive double room during October 2020 for each destination were determined and only centrally located hotels with a 3-star rating or higher were considered. Sacramento topped the rankings with an average price of $131 for the most affordable double room. Cincinnati and Phoenix complete the podium, with average rates...
2021 Hotel Forecast
Robert Rauch | October 1, 2020
By Robert Rauch The COVID-19 pandemic has caused unprecedented disruption to the hospitality industry, so when it comes to mapping a post-pandemic recovery, it’s clear that we are in uncharted territory. The Lodging Conference hosted Bernard Bauhmohl, Chief Economist of the Economic Outlook Group. His remarks related to vaccines, treatments, lack of stimulus package and election results led us to believe we are in for a longer ride along the trough of this recession. Our assessment is that we are at the midpoint with Q2 and Q3 behind us, two more quarters of recession will put us at one full year, close to the average length of a rece...
Travel CEOs Unite in Stark Call for Relief Bill
U.S. Travel Association | October 1, 2020
WASHINGTON (October 1, 2020)—The CEOs of 17 of the largest U.S. travel companies joined the U.S. Travel Association in the following statement pleading with leaders in Washington to advance a subsequent round of legislative relief from the economic fallout of the COVID-19 pandemic: “In the strongest possible terms, we urge Congress and the administration to reach agreement before the election on a relief package that will give travel employers—and the millions of livelihoods they support—a fighting chance to survive. “We represent an industry that accounts for nearly 40% of all the U.S. jobs that have been lost to the coronavi...
A Deep Dive Into Japan’s Road to Recovery
September 30, 2020
While many nations have lifted COVID-19-related limits on travelers, entry restrictions for international travelers in Japan remain in place. However, the Japanese government has launched a “Go to Travel” campaign to promote domestic travel and help boost local businesses. But while hotel occupancy has improved thanks to this government campaign, levels remain well below pre-pandemic levels with full recovery not expected for years. COVID-19 “second wave” & Go to Travel campaign impact The Go to Travel campaign provides subsidies of up to 50 percent on transportation, hotels, restaurants, tourist attractions and sh...
Beyond COVID-19: Leadership Skills Fit for the Future
EHL | September 30, 2020
It is no secret that the current public health crisis has sent the economy into turmoil, leaving businesses large and small fighting for survival and a workforce living through exceptionally challenging times. Against the backdrop of uncertain markets and the UN’s forecast global economy contraction of 3.2% in 2020, it is particularly important to be equipped with pertinent leadership skills. As we emerge from this crisis, it may be tempting to cut spending on leadership development in an effort to balance the books. However, it is at this time more than ever that appropriately skilled leaders can play their part in righting the ship. Wi...
Onyx CenterSource Leverages OnyxComp in Partnership With Skift Recovery Index
Onyx CenterSource | September 30, 2020
DALLAS (Sept. 30, 2020) -- Onyx CenterSource, a leading global provider of B2B payments and business intelligence to the hospitality industry, today announced it is a contributing partner to the Skift Recovery Index, a real-time measurement of the travel industry’s recovery. The monthly index – published by Skift, a media company that provides news, research, and marketing services for the travel industry – uses key indicators from data partners to calculate a recovery score that industry leaders can use to guide strategic planning initiatives. Onyx will provide weekly datasets for a number of countries around the globe using its pro...
New WTTC Campaign Highlights the Social Benefits of Travel & Tourism
September 28, 2020
‘Travel the world. Make a difference’ and share experiences Campaign launched on World Tourism Day (27 Sept) London, UK: A major social media campaign has today been launched to raise awareness of the wide-ranging social benefits of travel by the World Travel & Tourism Council (WTTC). The new initiative asks travellers to think about the positive social impact that travel makes to people, places and communities dependent upon the Travel & Tourism sector for their livelihoods. It also encourages people around the world to share stories of how tourism has made a difference and changed their lives. The campaign strap...
Second Wave Brings Uncertainty to Business Travel Recovery
The Global Business Travel Association | September 25, 2020
Attention turns to 2021 as two-thirds of companies plan return to in-person events Alexandria, VA (September 24, 2020) – The majority of Global Business Travel Association (GBTA) companies expect their employees to return to in-person events in 2021. Almost half (45%) expect attendance to resume in the first half of the year, according to the latest poll conducted between September 15-19, 2020, by GBTA, with an additional 25% expecting a return to in-person events in the second half of 2021. While most do not expect their company to host in-person meetings, events or conferences in 2020, there is growing optimism for 2021, with 37% ex...
U.S. Hotel Profitability Improvements Slow in August
STR | September 25, 2020
BROOMFIELD, Colorado—Improvements in U.S. hotel profitability metrics slowed in August, according to STR‘s latest monthly P&L data release. In a year-over-year comparison with August 2019, the industry reported the following: GOPPAR: -91.3% to US$6.90 TRevPAR: -74.5% to US$55.72 EBITDA PAR: -112.1% to US$-6.96 LPAR (Labor Costs): -64.4% to US$27.19 “Overall profitability (GOPPAR) remained in positive territory for a second straight month, but the incremental improvements we had seen over the previous two months slowed,” said Raquel Ortiz, STR’s assistant director of financial performance. “Even though Augus...
U.S. Only Region to Not Return to Profitability; China Hits 2019 Levels
HotStats | September 25, 2020
Hoteliers outside the U.S. have cause for muffled celebration: Europe, Asia-Pacific and the Middle East all showed positive gross operating profit per available room (GOPPAR) in August. The U.S. now becomes the only region that has yet to turn a positive month of profit since the COVID-19 pandemic took hold. Meanwhile, China is showing a true V-shaped recovery in profit, having matched December 2019 GOPPAR in August. One thing is sure, the global hospitality industry will be tested in the months to come, as the summer months give way to the fall and winter, where a dip in travel, particularly on the leisure side, is typical. This, compound...
Update COVID-19 Hotel Attributes on 3rd Party Websites
Sonya Taylor | September 24, 2020
Every webinar, training, and travel-related article has heavily leaned on the notion that making travelers feel safe while staying in your hotel or visiting your city is how we will get our occupancy back up. By this point, you surely have a pop up or landing page dedicated to new protocols around COVID-19. If not, start there, then come back and read the rest of this article. Is your hotel utilizing all of the opportunities on local listings, OTAs and brands have done to help us get the word out? We have a feeling you may have missed a few and we are here to help you navigate those opportunities. Google My Business, TripAdvisor and OT...
Will More Hotels Get Into the Home-Sharing Business?
Linchi Kwok | September 23, 2020
There is no doubt that COVID-19 has had an unprecedented impact on the travel and tourism industry. With massive layoffs and closures, many hospitality professionals have noted that they had never seen such a detrimental event to the industry in their careers. Nobody knows when the recovery will take place. Yet, there is at least one exception. The home-sharing sector has already rebounded. Airbnb booking is up and ready for an IPO When the pandemic hit, Airbnb reported a 90% drop in booking, or a $400 million adjusted loss in the second quarter. Then, Airbnb laid off 7,500 employees, or 25% of its workforce, and cut its marketi...
How to Launch a Hospitality Business in an Economic Downturn
EHL Hospitality Insights | September 23, 2020
Financial turmoil: A perfect opportunity for start-ups If you’ve been toying with the idea of starting a hospitality business, but have been put off by the economic downturn as a result of the ongoing COVID-19 pandemic, fret not. There’s hope. In fact, despite the global uncertainty and the unstable financial and political climate, now might actually be one of the best times to launch your business. Here’s why: Volatile markets create chaos and give rise to new problems. This means consumers are looking for new and innovative solutions, which presents the ideal opportunity for start-ups aiming to make a name for themselves. Co...
Small Businesses in Grave Peril Unless Washington Acts
The U.S. Travel Association | September 23, 2020
WASHINGTON (September 23, 2020)—More than half (55%) of all small travel businesses in the U.S. are at risk of either taking longer than six months to recover or never recovering at all, according to data released Wednesday by the U.S. Travel Association. The numbers, prepared for U.S. Travel by the data analytics firm Tourism Economics, indicate an extreme threat to travel-supported jobs, which employed one in 10 Americans pre-pandemic. A massive 95% of all accommodation and food service employment is found within small and medium-size businesses, as defined by the U.S. Small Business Administration, with only 5% of those sectors’ emp...
Fitch: Expectations for U.S. Speculative Grade Corporates Coverage Ratios Weakened by Pandemic
Fitch Ratings | September 22, 2020
As the economy and the capital markets navigate toward a new normal, Fitch Ratings tracks how the pandemic affects its forecast fiscal 2020 performance, focusing on key liquidity benchmarks and how they evolve over time across industries and market segments. Coverage Ratios Weaken The overall forecast for median operating EBITDA/interest in Fitch’s portfolio weakened to 2.8x in mid-August from 3.2x at the end of March. Between the end of March and mid-August, expectations for median operating EBITDA/interest ratios for 2020 weakened the most for Gaming, Lodging & Leisure (GLL); Transportation; Media & Entertainment ...
Border Uncertainty Could Cripple Queensland’s Economic Rebound Warns Accor
Accor | September 22, 2020
With estimates that border closures are costing Queensland $17 million* a day, Accor Pacific, Australia’s largest hotel group, is calling for urgent action to save the ailing state. Simon McGrath, Chief Operating Officer for Accor Pacific, said: “The current border restrictions mean that Queensland will miss out on the summer dollar, a crucial period for local businesses, the economy and jobs. Now is when people are booking visits for the next 3 to 6 months and if they don’t have certainty that Queensland will be open, then Queensland will miss the surge in travel and fall behind other states. Queensland could go from leadershi...
European Hotel Investment Market: H1 2020
EHL Hospitality Insights | September 22, 2020
When Warren Buffett’s Berkshire Hathaway sold all of its airline stocks in April, it appeared as an affirmation to some investors that the future of travel was on the rocks – while for others, it reignited discussions on whether the widely respected Orcale of Omaha had ‘lost his touch’. The travel and tourism sector has undoubtedly been facing tumultuous times in the wake of COVID-19, with the International Air Transport Association (IATA) itself announcing that air travel will not recover until 2024. However, it would be hasty to presume that the prospects of hospitality are all doom and gloom. Newly released data from Cushman &am...
Benchmarking 101: The Bottom Line on Utility Costs
HotStats | September 22, 2020
In the age of COVID, numerous operating costs have decreased, as hoteliers have done all they can to reduce expenses to help offset the extreme reduction in revenue. Still, there’s never zero cost. Even a closed hotel has expenses. So, too, do hotels operating at reduced capacity. One of the areas that hoteliers should always be mindful of is utilities, which in the 11th edition of the Uniform System of Accounts for the Lodging Industry (USALI) are recorded in the Property & Maintenance schedule. Utilities include electricity, gas, propane, oil and water/sewer. Utilities can have a massive impact on a hotel’s profit. And even...
STR: U.S. Hotel Performance for August 2020
STR | September 21, 2020
HENDERSONVILLE, Tennessee—The U.S. hotel industry showed slightly higher performance from the month prior, but at overall low levels during August 2020, according to data from STR. In a year-over-year comparison with August 2019, the industry recorded the following: Occupancy: -31.7% to 48.6% Average daily rate (ADR): -22.8% to US$102.46 Revenue per available room (RevPAR): -47.3% to US$49.83 The absolute occupancy level was the lowest for any August on record in the U.S., but all three key performance metrics were up from July levels. Recent September weekly data shows occupancy just below 50% due to a slight decrease in d...
Survey: 74% of Hotels Will Lay Off More Employees Without Further Aid
AHLA | September 21, 2020
WASHINGTON (September 21, 2020) – As devastated industries wait for Congress to pass another round of COVID-19 recovery legislation, a new survey of American Hotel & Lodging Association (AHLA) members shows that the hotel industry remains on the brink of collapse because of the pandemic. Results show 68 percent of hotels have less than half of their typical, pre-crisis staff working full time, and without further governmental assistance, 74 percent of respondents said they would be forced to lay off additional employees. AHLA conducted the survey of hotel industry owners, operators, and employees from September 14-16, 2020, with mor...
In Jittery Times, This Asset Class Is Steady
HotStats | September 21, 2020
It’s U.S. Open week. The top golfers in the world convene just outside New York City at Winged Foot Golf Club (no fans allowed) where they will compete for a major title and all the prestige and money that comes with it. Unlike some other golf tournaments, the U.S. Open is historically the most difficult. The rough is thicker. The greens are slicker. The stakes are higher. And the winning score—frequently above par—reflects that. The U.S. Open is a grind. The flashier, familiar, famous player is not assured victory. Case in point, last year’s victor, Gary Woodland, was ranked 25th in the world when he won and, unlike one Tiger W...
