Wednesday, October 22, 2008
Hotel performance metrics down year over year - mirroring airline capacity declines
Smith Travel Research reported today that the US Hotel Industry posted declines in two key performance measurements for this past week.
Occupancy fell 7.3% to 64.2% and the revenue per available room fell 7.1% to close at $69.76. The average daily room rate stayed fairly steady at a .1% increase to $108.61.
Brad Garner, VP of Operations and Client Services for STR stated in the release that “Airport locations led the rate of decline in occupancy and RevPAR—down 10.0 percent and 11.0 percent, respectively, and while capacity issues have been front and center recently, the lack of business travel into airport locations seems a bit more troubling as the fourth quarter unfolds and into 2009.”
The airport property decline is consistent with what we've been seeing on the airline capacity and frequency fronts, so this confirms that the hotel sector will not be immune to the cuts. Across the board results however seem to be between 4 and 6% lower than the capacity cuts themselves.
We can only hope that after the election, the media hype about the economy will subsid somewhat (please tell me that it will.....) and that then consumers and corporations will not be as fearful about spending, particularly on travel.
I am always curious as to how much of a recession in this media saturated world is stimulated by the fear that they engender. I'm ready for a new topic. How about you?
In reference to " Richard Anderson, Delta Air Lines (5Q Interview) " As a follow on to my earlier article last week about doing...
I am now going to shift gears away from online technology and the role that they play in the travel distribution ecosystem to a topic that I...
You fully understand that rung #1 of the ladder is spamming and you've gotten past rung #2, noise. You get it -- that in order to reall...
UPDATED - March 12, 2014 Well, in the world of travel distribution on the OTA side of the equation, if Travelocity was the "come...
Part 2 of a 2 Part Series on Individual Relationship Management (IRM) versus Customer Relationship Management (CRM) which is flawed B...
2011 starts today – The Era of Social Commerce is here - Solutionz Media and GuestCentric Systems partnership announcedIn the "The Future of the Social Web," report released by Forrester in April 2009, by Jeremiah Owyang, a Forrester senior analys...
This week, Bloomberg announced that Sabre raised $627 million in its IPO. Actually I don't think you should be allowed to call ...
If you are familiar with the game of dominos, there are dots on each domino and the placement of a domino on each turn requires that you mat...
Although the customer is now decidedly multi-channel, the components of the travel cycle have not really changed over the years. ...