Hotel occupancy is likely to decline by 29% over the next 12 months, leading to revenue losses of as much as $75 billion, according to a new study from business strategy outfit Magid and hospitality industry consultant Howarth HTL.
While the forecast is driven by anticipated drops in both business and leisure travel, the aversion to traveling for work seems the sharpest. Consumer sentiment for attending a meeting or conference over the next 12 months has dipped by 22%.
"The forecast shows the continuing significant impact COVID is having on hotel occupancy," said Magid vice president Rick Garlick in a statement. "Currently, the forecast suggests a 39% decline in occupancy for the next month. If the average occupancy at this time of the year (summer) is 70%, this would put current occupancy around 43%."
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Dan Packel
Dan Packel is an editor on the Business of Law desk at ALM. He writes a weekly briefing for Law.com, "The Law Firm Disrupted," on change and innovation in the legal marketplace. He is based in Philadelphia. Contact him at [email protected]. On Twitter at @packeld
