Hotels Moving Toward Recovery

The hotel industry will continue its path to recovery this year, but it won’t be without some speed bumps, and full recovery is still several years in the future. Those are the conclusions of the 2022 State of the Hotel Industry Report by the American Hotel & Lodging Association (AHLA).

Here are some of the top findings of the report, which was conducted with analysis by Oxford Economics.

» Hotel room revenues are projected to approach 2019 levels this year, reaching $168 billion.

» Occupancy levels are expected to hit 63.4%, nearing the 66% rate achieved in 2019 and far above the 44% and 57.6% rates of 2020 and 2021.

» The outlook for ancillary revenue, which includes food and beverage and meeting space, is less optimistic. Industry experts project that only a little over half of meetings and events will return in 2022.

» Leisure travelers will continue to drive recovery. In 2019, business travelers made up 52.5% of industry room revenue, while in 2022 they are projected to represent just 43.6%

» While a full recovery in business travel isn’t expected until 2024, global business travel is projected to increase by 14% in 2022, with the U.S. and China seeing the largest upswing. Both are projected to grow by 20%.

» Changing traveler segments, including the rapid rise of bleisure travelers (those who blend business and leisure travel), are affecting how hotels operate. One study of global business travelers found 89% wanted to add a private holiday to their business trips in the next 12 months.

“Hotels have faced enormous challenges over the past two years, and we are still a long way from full recovery,” says Chip Rogers, president and CEO of AHLA. “The uncertainty about the omicron variant suggests just how difficult it will be to predict travel readiness in 2022, adding to the challenges hotels are already facing.”

MACVB Annual Educational Conference finally reaches the shores of Mackinac Island.

As I rode in the carriage from the Shepler’s Ferry terminal to the Grand Hotel on Mackinac Island, my mind wandered to a scene from “Monty Python and the Holy Grail.” In said scene, King Arthur and his sidekick, Patsy, approach a castle while galloping and banging coconuts together. After a few moments passed and my mind wandered back to the tree-lined streets of the island, I realized it was the clippety-clop of the draft horses pulling our carriage that brought on my thoughts of Python.

 

SCS Global Services (SCS), a third-party environmental and sustainability certification, auditing, testing, and standards development, has launched its Zero Waste Standard, “Zero Waste for Events.”

 

The Events Industry Council’s Certified Meeting Professional (CMP) program, established in 1985, is recognized around the world as a badge of excellence in the events industry. JodieAnn Cady, an independent event project manager based in Mason, is among the professionals in the inaugural class of CMP Fellows, a program launched last year.