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U.S. Travel & Tourism Rebounds in 2021, May Surpass Pre-Pandemic Levels in 2022
WTTC | November 15, 2021
London – November 15, 2021 – The latest research from the World Travel & Tourism Council (WTTC) reveals the U.S. Travel & Tourism sector could experience year-over-year growth of 35.6% in 2021, significantly outpacing the year’s overall global tourism recovery. The outlook is even more rosy for 2022, with the travel sector in the U.S. expected to grow by another 28.4%, reaching nearly $2 trillion of the U.S. economy for a contribution exceeding pre-pandemic levels. By comparison, in 2019, the U.S. Travel & Tourism sector’s contribution to GDP represented nearly $1.9 trillion (8.6% of the U.S. economy). However, in 20...
Room Counts in China’s Hotel Construction Pipeline Reach All-Time High at the Q3 2021 Close
Lodging Econometrics | November 15, 2021
PORTSMOUTH, NH – November 15, 2021 – In the recently released China Construction Pipeline Trend Report by Lodging Econometrics (LE), at the end of the third quarter of 2021, China’s total construction pipeline stands at 3,571 projects/681,095 rooms, up 5% by projects and 7% by rooms year-over-year (YOY). Rooms in the country’s hotel construction pipeline are at an all-time high, and the pipeline is a mere three projects shy of the cyclical high of 3,574 projects set in the second quarter of 2020. While the COVID-19 pandemic continues to plague the global hospitality industry, China is showing signs of recovery. Large-scale vaccinat...
Back to Business (Travel)
STR | November 11, 2021
Undoubtably, leisure travel has created the most cause for celebration since recovery began from the global pandemic. However, to reach the next phase of performance recovery, the hotel industry needs business travel and groups to return in a big way. There have been early signs of that return in the U.S., and fortunately, the latest data for Europe indicates a similar return may be on the way. In-person conferences and events are slowly taking place across Europe as international restrictions continue to ease, such as the long-awaited end to the U.K. amber list on 4 October. In-person life is back, or is it? As in-person conf...
Hotel Profitability Global Update: Improvement for Most of the World in September
STR | November 11, 2021
November 11, 2021 — Profitability has improved across much of the globe as the hotel industry continues its slow recovery. In measuring that recovery, 2019 data is the benchmark, and by indexing with pre-pandemic levels, hoteliers can gain key context for the amount of profitability they are recapturing. Building on its initial launch in the U.S., STR now features monthly P&L data reporting in Europe, the Middle East, Asia Pacific, and the full Americas region. In our latest P&L press release focused on the Asia Pacific region, we noted that profitability in the region’s hotel markets was well below pre-pandemic levels as of...
Expedia Group Media Solutions Releases Q3 Trend Report for Travel Recovery
Expedia Group Media Solutions | November 10, 2021
SEATTLE, WA – November 10, 2021 – Expedia Group™ Media Solutions, the global travel advertising platform connecting marketers with hundreds of millions of travelers across the Expedia Group brand, today released its Q3 2021 Travel Recovery Trend Report. The quarterly report combines Expedia Group first-party data and custom research with actionable insights to help travel marketers on their continued road to recovery. “While the travel industry experienced ups and downs throughout Q3, we continued to see positive trends and overall progress on the road to recovery,” said Jennifer Andre, Global Vice President, Media Solutio...
Europe Hotel Pipeline Update
STR | November 9, 2021
During “normal” years, hotel development delays are common due to construction problems, permit issues, or some other minor situation solved by bumping an opening date. In these “pandemic years,” plenty of opening delays have also come from hotels unwilling or unable to operate amid lockdown restrictions or find adequate staffing to service a property during its ramp-up. Those types of delays, along with limited cancellations of planned projects, have contributed to Europe’s hotel pipeline reaching historic highs for the next three years. At the time of writing in early November, 67,840 rooms had opened in Europe in 2021, which ...
Middle East Q3 2021 Hotel Performance Update
STR | November 9, 2021
Several countries in the Middle East have been racing ahead of the rest of the world in vaccination rollout. The United Arab Emirates is a prime example with more than 86% of its population fully vaccinated as of 25 October 2021, according to Our World in Data.As vaccination rates improve, restrictions for international travel continue to be eased and demand in the hotel sector continues to improve toward pre-pandemic levels. In September, Middle East hotel occupancy was 58.6%, which was the region’s highest level since February 2020 and 93.9 % of the 2019 comparable (62.4%). Those levels reflect a consistent upward trend as the region’s ...
Altium Insurance Services Introducing Innovative Hospitality Pandemic Insurance
Altium Insurance Services | November 9, 2021
Underwritten by one of the world’s largest insurance carriers, Hospitality Pandemic Insurance provides protection against the loss of revenue experienced by a hotel franchisor, franchisee, management company, REIT, or operating company when a pandemic strikes; Exclusive product marketed by Belmonte Consulting LLC NEW YORK — November 9, 2021 —Altium Insurance Services (AIS) is introducing a first-of-its-kind pandemic insurance product for the hospitality industry, underwritten by one of the world’s largest insurance carriers. Available exclusively to hotel franchisors, franchisees, management companies, REITS, and operators of mu...
Baird/STR Hotel Stock Index Jumped 6.8% in October
Baird | November 8, 2021
HENDERSONVILLE, Tennessee, and MILWAUKEE — November 8, 2021 — The Baird/STR Hotel Stock Index jumped 6.8% in October to a level of 5,520. Year to date through the first 10 months of 2021, the stock index was up 20.7%. “Hotel stocks increased for the second straight month, but performance was led by the hotel brands once again,” said Michael Bellisario, senior hotel research analyst and director at Baird. “The hotel REITs were marginally higher in October, while the hotel brands were the absolute and relative winners. Delta variant concerns are in the rearview mirror now, and investors are looking forward to the recovery continuin...
Forecast: U.S. Hotel Demand and ADR Will Near Full Recovery in 2022
STR | November 8, 2021
NEW YORK — November 8, 2021 — U.S. hotel demand as well as average daily rate (ADR) on a nominal basis will near full recovery in 2022, according to the upgraded forecast just released by STR and Tourism Economics at the 43rd Annual NYU International Hospitality Industry Investment Conference. Additionally, revenue per available room (RevPAR) on a nominal basis is projected to be fully recovered in 2023. “We have essentially moved up the top-line recovery timeline by one year, with the caveat that improved RevPAR projections are largely due to ADR,” said Amanda Hite, STR’s president. “ADR has risen more rapidly than we expected...
Hilton Global Trends Report Unpacks Surprising Ways the Pandemic Changed People, Profiles Expected 2022 Traveler Passions
Hilton | November 4, 2021
MCLEAN, VA – November 4, 2021 – There is no doubt that the pandemic modified travel – but that’s just part of the story. Today, Hilton released a global trends report unpacking how the pandemic changed people. “The 2022 Traveler: Emerging Trends and the Redefined Traveler, a Report from Hilton” dives into an important truth: in two years, people’s lives were dramatically altered and that radically changed people. As a company that has welcomed 3 billion guests in its more than 100-year history, Hilton showcases within the report how it is evolving alongside the changing traveler, tackling areas of expertise such as: ...
Labor Costs Brought U.S. Hotel Profitability Down Further in September
STR | November 2, 2021
HENDERSONVILLE, Tennessee — November 2, 2021 — Increased spending on labor created lower gross operating profit for U.S. hotels, according to STR‘s September 2021 monthly P&L data release. Estimated labor costs came in at 96% of the comparable level from 2019, which was the highest index of the pandemic-era. All the key profitability metrics fell from August. GOPPAR: US$46.29 TRevPAR: US$140.94 EBITDA PAR: US$30.47 LPAR (Labor Costs): US$47.50 “Higher labor margins meant less room for profits, and the GOP margin fell for the second consecutive month to 33%,” said Raquel Ortiz, STR’s assistant dire...
Profitability in Asia Pacific Hotel Markets Well Below Pre-Pandemic Levels
STR | November 2, 2021
LONDON — November 2, 2021 — The hotel industries in seven key Asia Pacific markets reported profitability levels well below pre-pandemic levels, with only Beijing above 40% of the 2019 comparable, according to STR‘s September 2021 monthly P&L data release. Building on its launch in the U.S., STR now features monthly P&L data reporting in four world regions: Europe, the Middle East, Asia Pacific, and the Americas. Beijing’s gross operating profit per available room (GOPPAR) of US$29.91 was 70% of September 2019 levels. Singapore (US$39.99) came in at 35% using the same time comparison, while Hong Kong (US$6.22) wa...
Global Hotel Values Fall Due to Pandemic but Recovery Anticipated by 2025, Hears HVS Webinar
HVS | November 2, 2021
London – November 2, 2021 – Hotel values are not expected to make a full return to pre-pandemic levels until 2023-25 with some regions across the globe showing faster recovery than others, according to a webinar held by hotel consultancy HVS and EP Business in Hospitality this week [Wednesday 27th October]. HVS consultants from Europe, Middle East & Africa, Asia-Pacific, India and the Americas revealed the impact of the pandemic on hotel performance across the regions and the factors impacting recovery. While many markets faced additional issues including the rate of vaccination rollout, new hotel supply coming on stream, trave...
Tourism Tidbits: Developing Team Leadership in Uncertain Times
Peter Tarlow | November 1, 2021
By Dr. Peter Tarlow All too often tourism professionals talk about “partnerships and team leadership”, but unfortunately what many of them actually mean by that phrase is: "let's see what you can do for me." Agency-centric tourism, however, in this period of weather-related crisis, wars, political upheavals and pandemics is becoming more and more difficult to manage successfully. After 2020-2021 when tourism took an international pause, industry leaders in every aspect of travel and tourism, both in the private sector and in the public sector, have learned that in today's unstable market; communities and even entire nations need to...
Global Hotel Performance Moderates With Summer’s Close
HotStats | October 28, 2021
The cold hard truth is arriving with the chillier weather: global hotel performance has a ways to go before it's back to its former self. In the U.S., there is, however, cause for optimism. First, COVID case count: According to The Washington Post, new coronavirus infections in the country have dropped nearly 60 percent since a September spike due to the Delta variant. The seven-day average is also down some 58% since a mid-September infection peak. Coupled with a decreasing case count is the recent Biden administration decision to lift COVID-19 travel restrictions for fully vaccinated international visitors beginning November 8, a ...
Case Study: HAMA AP, HotStats Review Phuket Sandbox Performance
HotStats | October 26, 2021
The launch of the Phuket Sandbox on July 1, 2021, is an important step on the road to recovery from COVID-19 and a measure that many other destinations in the Asia-Pacific region could soon mimic. In conjunction with HotStats, HAMA AP has conducted a preliminary analysis of performance in the first two months of the Sandbox operation. HAMA AP applauds the efforts of those involved with getting this initiative off the ground, but from an asset management standpoint, we caution owners with rushing into similar launches until some very specific criteria are met; otherwise, the cost of opening too early may outweigh the benefit. Accordin...
STR: Brazil Hotel ADR Higher Than 2019 Levels
STR | October 26, 2021
BOGOTA — October 26, 2021 — Brazil’s hotel industry has surpassed its 2019 comparables in average daily rate (ADR) for two of the last three months, according to September 2021 data from STR. The country’s ADR reached BRL327.21 in September, which was 6.4% higher than the pre-pandemic comparable from September 2019 (BRL307.56). Brazil also beat its 2019 comparable during July with an ADR of BRL336.45. “September is typically one of the weakest ADR months in Brazil, but the country’s rebound in pricing has been strong since the early months of this year,” said Patricia Boo, STR’s area director, Central & South...
RevPAR Looking More Like 2019 for Much of U.S.; D.C. and New York State Still Behind
STR | October 25, 2021
STR’s latest 51-chart map shows a variety of recent national/regional trends as well as the general pace of the industry’s continued recovery. During the early weeks of autumn, revenue per available room (RevPAR) on a total-room-inventory (TRI) basis looked like 2019 for more markets. For the four weeks ending 16 October, 18 states outperformed their comparable 2019 RevPAR. That number was down from 21 states last month, but if we widen to “close misses” (i.e., an index score of 90 or higher), 37 states showed at least respectable returns toward their normal RevPAR. Compared with 2019, the best recent four-week RevPAR surpluses ...
New WTTC Report Provides Recommendations to Drive Recovery and Enhance Resilience of the Travel & Tourism Sector
WTTC | October 22, 2021
London, UK – October 22, 2021 – The World Travel & Tourism Council (WTTC) and the Ministry of Tourism of Saudi Arabia launched today an important new report that highlights the pain points to restore international mobility, and recommendations to drive the recovery of the Travel & Tourism sector, while enhancing its resilience. With the pandemic bringing international travel to an almost complete standstill, due to border closures and severe travel restrictions, Travel & Tourism suffered more than any other sector over the past 18 months. The sector’s contribution to global GDP fell from nearly US$ 9.2 trillion in 201...
Europe Travel & Tourism Sector Lags Global Recovery
WTTC | October 21, 2021
London, UK – October 21, 2021 – Latest research from the World Travel & Tourism Council (WTTC) shows Europe’s Travel & Tourism sector’s year on year recovery may only achieve a growth of 23.9% this year. The data from WTTC says this slow recovery is due to travel restrictions throughout the year, particularly in the first half, which continued to hinder the sector’s recovery. Before the pandemic struck, Europe’s Travel & Tourism sector’s contribution to GDP represented €1.92 trillion (9.5% of the total economy). However, according to the research, and based on the current rate of recovery, the sector’s c...
North America’s Travel & Tourism Sector’s Recovery Outstripping Many Other Regions, Says WTTC
WTTC | October 21, 2021
London, UK: New research from the World Travel & Tourism Council (WTTC) reveals the recovery of North America’s Travel & Tourism sector has soared ahead of many other regions of the world. With recovery taking place faster than expected, its contribution to GDP is forecast to rise 38% this year, ahead of the global average. WTTC, which represents the global Travel & Tourism private sector, says the successful vaccination rollouts in North American countries such as Canada, the U.S. and Puerto Rico, coupled with recently relaxed travel restrictions, are aiding the sector’s fast recovery. Before the pandemic struck, Nort...
Caribbean Travel & Tourism Sector Recovering Faster Than Any Other Region in the World
WTTC | October 20, 2021
International spending growth to outpace domestic With the right measures, Travel & Tourism jobs could surpass 2019 levels next year London, UK – October 20, 2021 – The Caribbean’s Travel & Tourism sector is recovering at a faster rate than any other region in the world, with its contribution to GDP expected to rise more than 47% this year, compared to just 30.7% globally, reveals new research from the World Travel & Tourism Council (WTTC). WTTC, which represents the global Travel & Tourism private sector, says that the recovery of the sector globally has been hindered by the lack of international coordination, seve...
Gettin’ the Groove Back: Booking.com’s 7 Predictions for the Triumphant Return of Travel in 2022
Booking.com | October 19, 2021
NEW YORK – October 19, 2021 –Along with practically every aspect of our lives, the course of travel has been redefined repeatedly over the past year and a half, with seismic shifts propelling us towards a continuously evolving version of the ‘new normal.’ A deepening and increasingly complex relationship with technology, a heightened awareness of the human impact on the planet and a renewed inspiration to take a stand on the important social justice movements of our time has made the world feel smaller and at the same time, infinitely vast. And while COVID-19 is not yet in the rearview mirror, an indefatigable sense of hope is beginni...
