Hospitality 2011 Big Picture: How Will the Recovery Impact the Hotel Industry?

Is there a light at the end of the tunnel this year for the hotel industry?

According to Adam Sacks, Managing Director of Tourism Economics (part of Oxford Economics), the worldwide economic fundamentals will improve in 2011, but growth will not be spectacular.  Here are a few of the observations and key predictions from The Hotel Yearbook 2011:

  • We see the glass as half-empty.  Our view of economic prospects in developed economies is subdued, compared with the extent of the recession we’ve been through.
  • Travel is back.  Travel has rebounded more quickly than most forecasters have expected.  Businesses are loosening purse strings, and leisure travel is showing modest growth (although rate has suffered significantly in the U.S. and is not even close to pre-recession peaks).
  • Demand growth will soften overall in 2011, due in part to the softening economic environment, but more a function of comparisons to a higher base.
  • Business travel will continue its recovery.  Companies will strengthen their appetite to participate in trade shows, conventions, and to meet with clients and prospects.
  • Leisure travel will hold its own, due to low debt service costs and a skew of unemployment toward low-income households.
  • Average Daily Rates will edge upward.  Hotels will be emboldened to increase rates as demand rises into 2011 and supply growth slows.
  • The hotel industry is headed in the right direction.  Overall, the industry enters 2011 poised to make incremental steps towards full strength.

Horizon Hospitality – Your Partner in Growth

Bottom line, this report says that the hotel industry can “expect small victories in 2011.”  Does your organization have the people to win?  Horizon Hospitality can provide access to the finest management, sales and culinary talent available as you gear up for growth this year.

About The Hotel Yearbook:  The Hotel Yearbook is a uniquely forward-looking annual publication. Each year, dozens of CEOs and other senior executives from the hotel industry worldwide, as well as leading analysts and observers, use this platform to share their expectations for the coming twelve months. Each of the 70+ contributors looks specifically at his or her area of expertise, describing the likely developments for the year ahead. As a whole, The Hotel Yearbook thus offers readers a comprehensive overview of the trends and factors that will have an impact on the performance of the hotel business in the year to come – as perceived by the industry’s leaders themselves. For more information visit www.hotel-yearbook.com.

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