The US hotel industry falls short on key performance measurements
Published: 10 Oct 2008
Smith Travel Research (STR) has shared that the US hotel industry posted declines in all three key performance measurements during the week ending 4th October 2008.
As per the latest data from STR, in year-over-year measurements, the industry's occupancy fell 11.1 percent to end the week at 59.4 percent. Average daily rate declined 2.4 percent to finish the week at US$103.90. Revenue per available room for the week dropped 13.2 percent to finish the week at US$61.70.
The firm shared that the major concern over the bailout of the US economy "crippled the weekly results across all industry segments".
Brad Garner, VP - client services, STR said, "20 of the top 25 markets—the largest hotel markets in the industry—were met with a double-digit rate of decline in RevPAR growth over the same week last year."
The two Top 25 markets posting year-over-year gains in RevPAR were Houston, which was up 52.3 percent primarily as a result of residents of the Gulf Coast displaced by Hurricane Ike, and St. Louis, which was up 8.4 percent due mainly to the vice presidential debate.
"A significant pull-back in business travel, a collapse in discretionary leisure travel and continued group attrition rates will be ongoing concerns until the credit market crisis eases," Garner said.
Comments
Kilgore said on 14 Oct 08:
Well, of course, occupancy rates for US hotels are down because the country has been in a recession and it is heading for a full-blown depression. The travel and tourism industries, like all other business sectors, must stop pretending that conditions are the same as they were only a few years ago. It is time to come up with alternatives -- a Plan B for hard times.
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