After significant losses for the travel industry in 2009, industry experts expect to see an improvement in 2010. Most speculate however, that it will not be significant.
In 2009, revenue per available room fell 16.7 percent to US$53.71 according to year-end reports from research firm Smith Travel Research. And while in the past year hotels have been managing costs, limiting capital expenditures, and reducing staff as occupancy, according to travel industry experts at PhoCus Wright, the U.S. lodging industry will still face struggles in the coming year.
Close to 100 hotels are scheduled to open throughout major U.S cities this year. This is because planning a hotel can take two-four years and construction adds an additional one to four years. “The hotel building cycles rarely mesh just right with economic cycles, ” said Mark Lomanno, president of Smith Travel Research. The majority of the hotels that will be were planned a few years back when the economy was still healthy.
Independent research company, Majestic Research notes however, that revenue trends for US Airlines have been improving. They believe this is largely due to improving comps on signs that business and corporate travel are beginning to pick up.
While most independent research firms believe 2010 will be a better year than ’09, the consensus is the real spike will happen two years from now.
About The Firms
Founded in 1985 as an independent research firm, Smith Travel Research provides information and analysis to all major U.S. hotel chains. Individual hotels, management companies, consultants, investors, and other lodging industry analysts also rely on STR data. With their comprehensive database of hotel performance, STR has developed a variety of products and services to meet the needs of industry leaders.
Majestic Research is an independent research company that provides institutional investors with primary research based on large commercial databases. Majestic converts raw data into metrics which can be used by investors to identify emerging revenue trends. Sectors covered include airlines, auto retail, casinos, consumer technology, cruise lines, eCommerce, homebuilders, and pharma & biotech.
PhoCusWright is a travel industry research research firm focused on how travelers, suppliers and intermediaries connect.PhoCusWright provides qualitative and quantitative research on the evolving dynamics that influence travel, tourism and hospitality distribution.
PhoCusWright is the travel industry research authority on how travelers, suppliers and intermediaries connect. Independent, rigorous and unbiased, PhoCusWright fosters smart strategic planning and tactical decision-making.
PhoCusWright delivers qualitative and quantitative research on the evolving dynamics that influence travel, tourism and hospitality distribution.