Global Hoteliers Say Worst is Over
The Global Hotel Market Survey shows hotel operators believe that the worst of the crisis is behind them and 2010 will be the beginning of the recovery. Six months ago, the majority of hoteliers were pessimistic, predicting that conditions would get worse.
Hoteliers in regions that are seeing stronger recoveries are the most positive. Asia and the Oceania moved from scores of -41 and -48 six months ago, to +47 and +42 now. Europe, which was the most pessimistic region at the time of the last survey, is now entering positive territory.
Hoteliers in America, which has been possibly the hardest hit region in the world over the last 18 months, now feel more positive about the coming year than in the middle of last year.
Most of the participants expect average room rates to stay more or less the same in 2010, with weak corporate and leisure group business demand, but expect a slight improvement in occupancy, driven by individual leisure travelers. (Source: Horwath HTL press release).
Hotels in the Americas Still See Rates, Occupancies Decline
Despite optimism about the future, the present remains tough for hotels in the Americas, according to the latest STR Global monthly numbers.
In January 2010, the region’s occupancy ended the month virtually flat with a 0.7-percent decrease to 45.5 percent, average daily rate (ADR) fell 6.0 percent to $96.68, and revenue per available room dropped 6.7 percent to $43.98. Boston, Mass., reported the largest occupancy increase, jumping 18.3 percent to 48.9 percent.
Two other markets reported double-digit occupancy increases:
- Miami, Fla. (up 10.6 percent to 74.6 percent)
- Rio de Janeiro, Brazil (up 10.4 percent to 76.4 percent)
- Alberta, Canada, posted the largest occupancy decrease, falling 9.9 percent to 46.9 percent.
Three markets reported double-digit ADR decreases:
- Washington, D.C. (down 27.2 percent to $132.65)
- Chicago, Ill. (down 14.5 percent to $85.99)
- San Juan, Puerto Rico (down 10.8 percent to US$190.01)
(Source: STR Global press release)
Spotlight... on Airports
Travelers continue to be dissatisfied with airports, according to the J.D. Power and Associates 2010 North America Airport Satisfaction Study. Airports continue to struggle with delivering baggage promptly, providing a comfortable atmosphere and making airports easy to navigate. The study found that airports need to consistently deliver on three things:
- Clear signage
- Delivering baggage quickly and accurately
- Partnering with the Transportation Security Administration (TSA) to reduce security wait times.
A few airports are doing better than others. Detroit, Denver and Minneapolis St. Paul were the top three among large airports (Denver and Minneapolis/St. Paul tied for second place). Kansas City, Portland and Tampa were the top three medium sized airports. And Indianapolis, Fort Myers/Southwest Florida and Tucson were the top three small airports. (Source: J.D. Power’s press release).