As hotel rates recover, amenities could lag
Pent-up demand is prompting many business travelers to hit the road, but they won’t be alone. They will share the road with vacationers, for whom the prospect of seeing the people and places they missed during the pandemic proves impossible to resist.
Rising leisure demand has helped push hotel rates near pre-pandemic highs for some hotel brands. Sunny fourth-quarter hotel profits prompted forecasters to accelerate full recovery projections. Commercial real estate service CBRE in March revised its recovery timeline for the US hotel industry from 2023 to 2022 – projecting the rate, occupancy and revenue per available room to reach 2019 levels this year.
Globally, domestic leisure travel is driving the recovery in most markets, mirroring the patterns emerging in North America. That said, the overall performance recovery will be a little slower, according to hospitality industry data firm STR, with a full recovery in the Middle East not expected until 2023, Europe in 2024 and Asia. -Pacific in 2025. But especially in Europe, the rate will increase first. – before occupation and RevPAR – led by the UK, which has already seen rates rebound near pre-pandemic highs, according to the researcher.
As is the case in the US, the hospitality industry in the UK and Europe has been rocked by macroeconomic challenges, including supply chain and labor shortages, which are expected to continue. even after governments eased travel restrictions for two years and business travel got off to a good start. in 2022. The result of rising labor and supply costs, according to many industry observers, will be higher rates passed on to businesses, but also a potential decrease in services on site. Business travelers and travel buyers will have to adapt.
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