Skip to main content

Hotels need corporate and group business this summer for a full recovery

Image
By

Business travelers made up 52.5% of the room revenue for the hotel industry in 2019. Such a number was projected to hit 43.6% only, according to the AHLA’s 2022 State of the Industry report (AHLA, 2022). That is a $21 billion gap (estimated $69 billion in 2022 vs. actual $90 billion in 2019) (Tanzi, 2022). The recovery of the lodging industry is primarily driven by leisure travelers now, some of whom have become the new “bleisure” (business + leisure) travelers.  

NYC’s business-travel revenue gap between 2022 and 2019: -$2.5 billion 

 

Traditionally, metropolitan markets were the top destinations for corporate events and large conventions, but that was also the sector that got hit the most by the pandemic. The work-from-home trend could possibly encourage more bleisure travelers to stay/work in a hotel for a stretched weekend. Still, bleisure travelers are different from those attending large corporate events or conventions. They do not need any boardrooms or convention spaces during their trips.

 

In New York City alone, it is projected a $2.5 billion business-travel revenue gap between 2022 and 2019 (down from $4.5 to $2 billion). Other metropolitan areas across the nation, such as Washington D.C., Chicago, and San Francisco, are not doing any better, with a projected revenue gap of $1.5 billion ($1.3 vs. $2.8), $1.2 billion ($1.3 vs. $2.5), and 1.7 billion ($0.765 vs. $2.4) respectively. Such losses cannot be easily covered by leisure travelers alone. 

 

The glass is half empty and half full, depending on whom you ask

 

STR surveyed close to 500 global business travelers in February 2022 about their likelihood to travel for business, right after the surge of Omicron cases in the U.S. (Klauda, 2022). The results were not optimistic, with 43% saying they would be less likely to travel but only 12% indicating they would be more likely to travel post-pandemic. Moreover, only 30% of them agree or strongly agree that business travel would return to the pre-COVID level, whereas 48% disagree or strongly disagree. 

 

On the contrary, corporate travel managers are more optimistic about the outlook for business travel. According to TRIPBAM, a firm that tracks corporate bookings, the overall trend for business travel has gone upward since 2021, although with some vibrations when the Delta and Omicron variants hit. Entering February 2022, the pace of bookings has been quickly picking up. 

 

Are you feeling hopeful? Will hotels begin seeing more business travelers soon?  


Note: This viewpoint was first published in the Hospitality News Magazine - Hotel, Dining, and Eatery Trends; The picture was downloaded from DisneyMeetingsAndEvents.com.

Labels:

Comments

  1. chic-aura.comJune 18, 2022 at 7:22 AM

    You have done good work by publishing this article here.Luxury Wedding Décor Kenya I found this article too much informative, and also it is beneficial to enhance our knowledge. Grateful to you for sharing an article like this.

    ReplyDelete

Post a Comment

Popular posts from this blog

Is It OK for Hotel Staff to Wear Piercings and Tattoos?

By
Time has changed. I see more and more college students wearing piercings and tattoos nowadays, but is it OK for hotel staff to wear piercings and tattoos? The answer is “no, no, no.” According a report at USAToday.com, customers across the board do not want to see any hotel workers with pierced eyebrow, pierced tongue, tattooed arm, or nose ring. Some may argue that tattooed and pierced workers may seem more acceptable in edgy boutique hotels as compared to the big franchised hotels, but the survey results did not find any differences among a variety of lodging products. Many respondents believe people who wear visible tattoos and piercings are taking a high risk of their professional lives. If you stay in a hotel, do you mind being served by tattooed and/or pierced staff? What if you are the one who makes the hiring decision? References: USAToday.com: http://tinyurl.com/linchikwok08042010 Picture was downloaded from http://tinyurl.com/linchikwok08042010P
28 comments
Read more

Where Coffee Meets Culture: My Experience with Orientation, Socialization, and Culture at Dutch Bros (by Karina Martinez)

By
When people think of Dutch Bros, they usually picture colorful drinks, loud music, free stickers, and baristas so friendly they’ll jump in the car with you.  As someone who has had the opportunity to work for Dutch Bros, I can say that the energy customers feel isn’t an act; it is the result of intentional and effective HR practices that are focused on orientation, socialization, and culture. From your very first day, you experience how these practices shape the entire Dutch experience.  Orientation, Socialization, Culture   In HR management, orientation is the introduction of the role and company to new hires. This is intended to help them feel welcomed and informed. Socialization goes beyond the initial training process; it’s how new hires grasp the organization’s values, behaviors, and traditions over time. Together, these fun...
5 comments
Read more

Average/Below-Average Looking People Can Earn as Much as the Attractive Ones

By
Research has shown that attractive people can not only charm interviewers (and thus get hired easier), they are also more likely to earn more as compared to those with average or below-average looks. Accordingly to a Wall Street Journal report , attractive people can earn 3% - 4% more than a person with below-average look. If such difference adds up over a person’s lifetime, an attractive person can earn up to $230,000 more than an ugly worker; even an average-looking person can make $140,000 more. Another relevant Wall Street Journal report also suggests that workers who exercise regularly can earn 9% more than those who do not. If that is the fact (I believe it is), is it legal? Can employers do that? Linchi Kwok and Otto @SyracuseU Career Fair To my knowledge, no law or regulation under EEOC (Equal Employment Opportunity Commission) considers a person’s look as a protective class. It is true that people in general have an idea of what kind of person they feel attract...
33 comments
Read more