The hospitality industry will continue to head towards recovery in 2022, but the path will be uneven and potentially volatile, and full recovery is still several years away, according to the 2022 State of the Hospitality Industry Report from the American Hotel & Lodging Association (AHLA). . The report, which reveals changes in consumer and business sentiment, was created in collaboration with AHLA Silver Partner Accenture and is based on data and forecasts from Oxford Economics and AHLA Platinum Partner STR.
Key findings of the report include:
• Hotel occupancy rate and room revenue expected to approach 2019 levels in 2022
• Prospects for additional income, which includes food and drink and meeting space, is less optimistic
• Hotels collectively lost $111.8 billion in room revenue alone in 2020 and 2021
• Pleasure travelers will continue to drive the recovery: in 2019, business travelers accounted for 52.5% of chambers of industry turnover; in 2022, it should represent only 43.6%
• Business trip expected to remain down more than 20% for much of the year, while only 58% of meetings and events are expected to return; the full effects of Omicron are not yet known
• Modification of passenger segments, including the rapid increase in pleasure travelers – those who mix business and leisure travel – impact how hotels operate. In fact, a study of business travelers around the world found that 89% wanted to add private vacations to their business trips in the next twelve months.
• In this new environment, technology will be even more critical to a property’s success, according to AHLA Platinum Partner Oracle Hospitality, as hotels invest in technology to meet the current and future needs of guests and employees.
“Hotels have faced tremendous challenges over the past two years, and we are still a long way from a full recovery. The uncertainty surrounding the Omicron variant suggests how difficult it will be to predict travel readiness in 2022, adding to the challenges hotels are already facing,” said Chip Rogers, President and CEO of AHLA. “The slow return of business travel and the decline in meetings and events continues to have a significant negative impact on our industry The growth of leisure and pleasure travel is a game changer for our industry, and hotels will continue to evolve to meet the needs of these “new” travellers. »
“Travel and hospitality brands still face an uncertain market, but all of these changes also herald a new era of opportunity for building long-term customer loyalty. They need to adapt to demand and respond to the added complexities and volatility of travel by offering a ‘travel partner’ mentality to their leisure and business customers,” said Liselotte De Maar, Managing Director of the travel industry at Accenture. “Travelers are no longer focusing solely on the price and quality of a place, but also on the values and impact of cleanliness and sustainability, and expecting a clearer and more digital service. Companies will have to continue to digitally transform, reinvent their loyalty model, as well as rethink the employee proposition, if they wish to thrive.
Like other industries, hotels are facing a significant labor shortage that could impact the recovery. The AHLA Foundation is launching a new national, multi-channel advertising campaign to help fill the hundreds of thousands of open jobs in the hospitality industry. The pandemic wiped out 10 years of job growth. This multi-year effort, “The Hotel Industry: A Place to Stay”, aims to help job seekers discover the more than 200 career paths and the many benefits offered by the industry, including competitive salaries, benefits , flexible schedules and travel opportunities. Ads will begin running in Columbus, Dallas, Denver, Miami and Phoenix on Facebook, Google and Youtube in English and Spanish.
American Hotel and Lodging Association