Travel and Tourism Trend in Hotel Industry: While a Gloomy Forecast for 2009 is Living Up to Expectations, Will it Get Worse? A lodging expert and professor at NYU Tisch Center for
Hospitality, Tourism and Sports Management suggests that after years of record spending levels, 2009 is forecast to be
the first year since 2003 that the US lodging industry will spend less
on capital expenditures than the prior year, to the tune of $3.75 billion. That represents a decrease of over 30 percent from 2008. He predicts that hotel guests are unlikely overall to notice the decrease in spending or make-overs and renovations as certain items will be maintained such as bedding, signage and Internet service. Other predictions for 2009 include 1 to 3 percent fewer occupied hotels rooms and lower average daily rates of 2-5 percent, resulting in a
decline in RevPAR (revenue per available room) from 2.5 – 12 percent.
As I watched my city council meeting in Huntington Beach, Calif., the city treasurer announced a decrease of 10 percent in revenue from hotels in December 2008, right in line with this predicted trend. Occupancy is predicted to be the lowest since 1971, at 56 - 59%, with 16 consecutive months of occupancy
decline in the US, more than the 12 month period following 9-11. In 1990 and 1991 occupancy dropped for 18 months in a row.
Forecasters travelhorizons and Ypartnership projected better outcomes through recent surveys they performed, which brings into question the data’s reliability. Many factors such as travelers surveyed just now being impacted with job reduction or loss, business loss and other factors may be creeping into the mix during the time when U.S. travel companies and hoteliers are typically gearing up with new hires to face the summer season.
The survey results found that 71 percent of
leisure travelers intend to take an
overnight trip of 50 miles or more than home in the next 6 months, confirmed by Peter Yesawich, CEO of Ypartnership.
Travelers may see elimination of fees
and surcharges introduced and collected over recent years such as early departure fees, reservation cancellation fees,
internet fees, local calls, business center fees, room services
delivery surcharges, etc. Transient Occupancy Taxes and surcharges collected by the municipalities could increase, though travel experts advise cities to look elsewhere for additional revenue as overtaxed guests may also look elsewhere for a cheaper vacation.
Like so many other businesses, hotels could close in certain markets if numbers are not met.
Tallman Hotel in Upper Lake, California is a small, 17-room hotel built in the 1890’s. It has outlived its original builders, and lives on to tell a story. Recently renovation, it made the list of Point of Historical Interest on the California Register of Historic Resources. The Victorian hotel has been restored to its former glory and its newest owners have invested in the property as a labor of love, artfully recreating Blue Wing Saloon & Café to replicate a business that once stood next to the lodging house. The hotel is historically significant because of its connection to a pioneer family named Tallman, and its vernacular architecture. The development of Upper Lake and Lake County as a tourism destination and center for agriculture and commerce are tied to this hotel. Modern enhancements that didn’t compromise its exterior treatments and design include state-of-the-art heating and cooling systems, an green practices in an eco-friendly environment. Garden suites with private balconies or garden patios with Japanese soaking tubs offer vacationers an experience more than just a bed and sleep. Gardens enhance its food services and cuisine with fresh vegetables, herbs and flowers in the hotel and cafe saloon. What we appreciate most are the prices. You can book rooms at affordable rates in the off-season (winter) and relax without the hassles that regularly fill our lives in the 21st century effort to survive. Check prices now.