PKF is Bullish On Hotels Despite Economic Gloom
Hotel demand growth over the past two years has been surprisingly strong, according to PKF Hospitality Reseach, which is forecasting that room revenue for hotels will grow 7.2 percent this year, more optimisitc than forecasts earlier in the year.
The reason for this optimism, PKF says, is that 91 percent of the people in the workforce have jobs, the unemployment rate among educated workers, who make up the largest majority of the travelling public, is under 5 percent and corporate profits are soaring to new highs. All these factors are why the hotel inudstry has seen a growth in demand despite the weak economy.
Demand is growing faster than the supply of hotel rooms is growing. PKF says this means hoteliers can start to raise rates—average daily rates thus far have lagged other major indicators for hotels. (Source: PKF press release).
New Try to Expand High-Speed Rail
A new report says that high-speed rail can work in the U.S. but that it will take a fresh appraoch that focuses on public-private partnerships that supplement state and federal funding with private funding. It woud mean prioritizing high-speed rail in areas such as California, where work on a high-speed line is moving forward, and the northeast, where the Acela already competes well with airlines.
The recommendations are in a report by the Lincoln Institute, which has worked on high-speed rail internationally for decades. It points to the example set by Asian and European countries whose trains go 185 mph or faster.
It recommends putting high speed stations in city centers with lots of connections to buses, subways and commuter rail. (Source: Lincoln Institute press release).
Global corporate travel booking grew by more than 10.2% in August 2011 over August 2010, accroding to Pegasus Solutions, a global hotel reservation processing company. August improved over July, when the pace of growth flagged in the face of mounting financial market tensions.
Pegasus noted other trends showing that companies are trying shave travel costs but not eliminate travel.
- Length of stay is growing very slowly, increasing from 2.2 nights in August 2010 to 2.21 nights in August 2011.
- Booking lead times are increasing gradually, from 17.44 days out in 2010 to 17.79 in 2011.
- South America showed the greatest revenue growth—30.3% year over year.
- North American and Europe reported 13.6% and 15.2% revenue growth, as those markets grappled with the impact of Hurricane Irene and concerns about the debt crisis in Greece and other European countries.
Source: The Pegasus View report