Hotel Industry Recovery Looks Stronger

Hilton Garden Inn Hotel

Volcano´s Impact on Hotels Balances Out
The Iceland volcano´s impact on European hotels wasn´t all bad, according to Trust International, a major hotel reservations company.

Cancellations increased to a peak on Monday, April 19, to reach more than 50 percent over normal levels. But new reservations also curved upward by more than 25 percent, suggesting travelers were postponing rather than canceling trips altogether.

Hotels witnessed increased levels of guests extending their stays and walk-in bookings as travelers booked hotels after their flights were cancelled, which helped mitigate the effect of the cancellations.

Richard Wiegmann, manager director of Trust International, said that the international hotel industry is in recovery and the outlook for the rest of the year remains promising. (Source Travel Trust press release).

U.S. Hotel Industry Recovery Looks Stronger Than expected
The U.S. hotel industry should do better than initially expected this year, with occupancy increasing by 1.9 percent to 55.8 percent, according to Smith Travel Research.

Next year, STR says occupancy will increase 1.9 percent to a still relatively low 56.8 percent and average daily rates will increase 3.5 percent. The industry won´t be back to levels of 2007 or 2008, but the industry should see 2 good years in a row, said Mark Lomanno, President of STR. (Source: STR press release).

Car & Rail

Avis Tries to Block Hertz-Thrifty Deal
A suitor may throw a wrench into Hertz´ plans to buy Dollar Thrifty Automotive Group.

Avis Budget Group told the Dollar Thrifty board that it is prepared to make a substantially higher offer, saying that Avis had several times expressed interest in acquiring Thrifty.

Avis said that the heads of the two companies had had a date to discuss the matter, but Thrifty canceled it when it announced the Hertz deal.

Acquiring Thrifty would move up Hertz by about 300 domestic corporate locations and 1,250 international franchises. (Source: Hertz and Avis press releases).

Airline Security Vs. Privacy

A recent study found Americans are willing to put up with some loss of privacy in return for greater air security.

  • 93 percent said they are willing to sacrifice some privacy.
  • 65 percent said they would put with full electronic scans
  • 57 percent would go through biometric security checks such as iris scans or fingerprints
  • 72 percent said they would provide personal data in advance

Source: Unisys Security Index press release.