Excerpt from CoStar
Labor Day Is When the Leisure Traveler Normally Yields to the Business Traveler
It’s the summer of the leisure traveler and while hotel occupancy remains below 2019 levels, average daily rate has surpassed its pre-pandemic levels in recent weeks as hoteliers take full advantage of pent-up demand.
However, even as summer provides much-needed relief to the industry, operators remain wary of the post-Labor Day hospitality landscape.
Transient demand has nearly returned to pre-COVID-19 levels, but group demand remains well below comparable 2019 figures, which is an increasing concern as the fall conference season approaches.
Prior to the pandemic, groups contributed about $50 to rates over the summer months, a figure that jumped about $20 from September through November.
At the same time, transient occupancy fell around eight points from its summer highs of just over 50% and group occupancy crept up from 20% to around 25%. Given that transient travel patterns have closely mirrored 2019 trends this summer, it’s likely that transient leisure demand will slacken after Labor Day.
This spells concern for the industry, as the groups that normally replace leisure travel over the transitory fall months aren’t expected to return in significant numbers until early 2022. Groups currently contribute less than $30 to luxury and upper upscale hotel ADR, which came in at $235 for the week ending July 10, a staggering $24 increase over 2019.
Click here to read complete article at CoStar.
Logos, product and company names mentioned are the property of their respective owners.
© 2021 Hotel News Resource