Hotel Revenue, Rates and Occupancies Are Up
The hotel industry´s recovery is continuing, according to Smith Travel Research, which studies the hotel industry. Occupancies increased .5% to 63.4%, average daily rates rose 3.5% to $101.44 and room revenue was up 8.1% to $64.28.
The growth in average daily rate remains sluggish. Among the top 25 markets, Detroit and Houston reported the largest occupancy increases for the quarter, 10.1 percent each. New York City reported the largest occupancy decrease, falling 1.1% to 85%, followed by Washington, D.C., with a 0.9-% decrease to 76.4%.
Two markets reported double-digit daily rates increases, San Francisco San Mateo, Calif. 13.6% and Oahu 11.3%. (Source: STR press release).
Occupancy Gains Continue to Outpace Room Rates Increases
PKF Hospitality Research is forecasting that demand for U.S. hotel rooms in 2011 will increase a solid 4.9%, while the average daily room rate paid by guests will rise a modest 2.4%.
The 4.9% rise in occupied rooms forecast for 2011 compares to the 7.6% increase in lodging demand for 2010 reported by Smith Travel Research (STR). Both growth rates are well above the STR long-term average annual demand growth rate of 1.5 percent. The increase in demand is surprising, given stagnant employment and continued weakness in housing markets, according to PKF-HR. (Source: PKF-HR press release).
Business Travel …
Smart and Liking it
Business travelers today are increasingly using technology to travel smarter and to adapt to life on the road, according to a new study by the Global Business Travel Foundation and Concur, which provides travel and expense management tools. Among some of the study´s major findings:
- Most say there´s no substitute for being there in person 78% and an equal number enjoy traveling for work
- Nearly half 46%, say staying in touch with family and friends and staying safe while traveling are the most important goals of their trip
- At least two-thirds travel with laptops, wireless broadband, portable GPS and smartphones
- Nearly half, 46% have to work with tight budgets
- The average trip lasts four days and costs $1,837
- Business travelers tend to be college educated 71%, 38 years old on average, and male 59%
The study identified five types of business travelers: the Veteran 33%, the Road Weary (25%), Wide-eyed and anxious 21%, Passionate High-Tech 14% and New Recruits 7%. (Source: GBTA press release)