consumer demand
What to Expect in the Hospitality Industry in 2024
Mark D. Podgainy | March 4, 2024
By Mark D. Podgainy The hospitality industry experienced a modest increase in RevPAR in 2023, and the industry seems to be optimistic about the future. What’s ahead for 2024? Uncertainty is the major theme. What’s Ahead • Interest rates will be higher for longer. Expectations of a number of rapid cuts to the Federal Funds rate early this year have been dashed with the latest inflation data. Most economists still expect reductions in the Federal Funds rate but have pushed back the time frame for the first reduction to late spring and have reduced their forecasts for the number of reductions. If inflation remains stubbornly high,...
What to Expect in the Hospitality Industry in 2023
Mark D. Podgainy | January 30, 2023
By Mark D. Podgainy Last year was a year of dramatic recovery for the hospitality industry. What’s ahead for 2023? Definitely clouds, but the question is whether the clouds will pass over or they will result in a storm. What’s Ahead High labor costs will persist. While many workers have come back to the hospitality industry after leaving during the Covid-19 pandemic, the industry is still short of employees. This supply-demand imbalance will continue to keep labor costs high and impact margins. As the economy slows the supply of employees will grow (layoff announcements in the news have been increasing), but it is unkno...
