September11
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How Is Hotel Industry Doing Today?

Fri Aug 29, 2008 2:38 pm

Are hotels doing OK despite economic slowdown?
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airportugal310
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RE: How Is Hotel Industry Doing Today?

Fri Aug 29, 2008 3:24 pm

Judging by the prices for the hotels in Boston for the month of September, I would say they arent doing too bad around here!

that doesnt speak for the industry as a whole though
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srbmod
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RE: How Is Hotel Industry Doing Today?

Sat Aug 30, 2008 4:54 am

I know the hotels in Las Vegas are hurting, as even for this weekend, they've got dirt cheap rates for a holiday weekend. Harrah's Entertainment has actually sent out an updated Total Rewards room rate mailer that covers September and October room rates and the rates are cheaper than the prior mailer. I'm expecting them to send another one out for the November dates.

The hotels in Las Vegas are even going as far as giving you a flight credit of a certain amount to be applied on a future trip to Las Vegas. For some folks, that may equate to a free flight.
 
plateman
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RE: How Is Hotel Industry Doing Today?

Sat Aug 30, 2008 1:45 pm

Extended Stay hotels are doing great, I read recently in USA Today.

Rates are typically cheater for more amenities. This has lead to their occupancy rate slightly higher than the national average.

Brian
"Explore. Dream. Discover." -Mark Twain
 
September11
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RE: How Is Hotel Industry Doing Today?

Sun Aug 31, 2008 12:14 am

Higher fares = declining # of leisure travelers = lower hotel rates

Lower fares = increasing # of leisure travelers = higher hotel rates


Do you agree with that?
Airliners.net of the Future
 
PSA727
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RE: How Is Hotel Industry Doing Today?

Sun Aug 31, 2008 12:57 am

It depends on the market.

NYC is doing great. Any decline in American demand has been offset by the increase in
European demand.

Las Vegas is feeling the pain. Aside from the flight cuts at LAS, the city relies upon the
Southern California driver segment a great deal. So with high gas prices......

Hawaii is taking a hit because of the massive flight cutbacks due to ATA and Aloha.
There's really no other viable way for tourists to get there. Plus, airfares to Hawaii are
now very high because of the cut in competition, which makes it less attractive cost-wise
for people wanting to go on vacation there.

The one place to watch is Orlando. That market is very sensitive to the state of the economy.
fly high, pay low...Germanwings!
 
asuflyer05
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RE: How Is Hotel Industry Doing Today?

Sun Aug 31, 2008 1:28 am

Hotels not only suffer from low occupancy and room rates but from the decline in real estate value.
 
WindowSeat
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RE: How Is Hotel Industry Doing Today?

Sun Aug 31, 2008 7:12 pm



Quoting September11 (Thread starter):
Are hotels doing OK despite economic slowdown?

Are you talking about the US specifically or worldwide?

Quoting PSA727 (Reply 5):
The one place to watch is Orlando. That market is very sensitive to the state of the economy.

How so?


All in all, the hotel industry has been doing ok. If you're a major hotel chain, your losses in some markets have been offset by gains in others. Initially at the start of the economic downturn and when oil started to rise last year, the airlines' inability to raise fares and cut capacity immediately meant that people were flying and hotels in the US rode on that wave for a little bit. But things have changed now. Our secondary and tertiary markets (think Duluth, MN or Portsmouth, Maine) have been severely affected. On the other hand, some of our Tier 1 cities (think New York, Chicago, Los Angeles) have been doing great. New York is of special interest with the declining hotel capacity over the years, with hotels being converted into high end condos, the rates and occupancy have held strong in New York.

The same is pretty much true for International markets and Tier 1 cities like London, Sydney, Singapore have not seen much impact from the downturn. However there are developing markets (think India, China, Vietnam, Dubai) which have led strong growth for the hotel industry. European leisure destinations have seen a reduction in the summer traffic but their Middle East season continues to be strong.

In short, the hotel industry is not going into the red any time soon.

cheers,
WindowSeat
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PSA727
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RE: How Is Hotel Industry Doing Today?

Sun Aug 31, 2008 11:42 pm



Quoting WindowSeat (Reply 7):
Quoting PSA727 (Reply 5):
The one place to watch is Orlando. That market is very sensitive to the state of the economy.

How so?

Because it heavily relies upon family vacation travel. Ever been on one of the "kiddie"
flights into/out of MCO? Very different than an ORD-DCA flight. Yes, there are some
conventions held there, but Orlando is seen by most as a leisure market.
fly high, pay low...Germanwings!
 
kingsford
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RE: How Is Hotel Industry Doing Today?

Mon Sep 01, 2008 1:27 pm

We are seeing bad figures since March in Contiental Europe, August was catastrophical. The Japanese do not travel so much due to expensive flights, Americans travllers tend to decline in numbers because of strong Euro. Transient demand during week-ends is also weak, very price sensitive, group/meetings demand is stable at best. 2008 might be at best equal to 2007 in terms of revenue. Lower category hotels (3 stars) and long-stay properties are the trend...
 
PSA727
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RE: How Is Hotel Industry Doing Today?

Mon Sep 01, 2008 4:02 pm



Quoting Kingsford (Reply 9):
We are seeing bad figures since March in Contiental Europe, August was catastrophical. The Japanese do not travel so much due to expensive flights, Americans travllers tend to decline in numbers because of strong Euro. Transient demand during week-ends is also weak, very price sensitive, group/meetings demand is stable at best. 2008 might be at best equal to 2007 in terms of revenue. Lower category hotels (3 stars) and long-stay properties are the trend...

What I'm noticing this summer, especially in Berlin, is that the age of the tourist is quite young, and thus the amount of "tourist dollars" spent is lower. The proliferation of low-cost
flights into SXF is probably the factor. They like Berlin's nightlife (who doesn't) but they're
really not there for shopping or the cultural venues.
fly high, pay low...Germanwings!
 
Delta767300ER
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RE: How Is Hotel Industry Doing Today?

Mon Sep 01, 2008 10:19 pm



Quote:
Because it heavily relies upon family vacation travel. Ever been on one of the "kiddie"
flights into/out of MCO? Very different than an ORD-DCA flight. Yes, there are some
conventions held there, but Orlando is seen by most as a leisure market.

I cant stand any flight into MCO. Too many families with their screaming children onboard. You cannot have a pleasant flight with them. When I take the ATL-MCO flight, I usually take a later night flight so I dont have to deal with them. Some of the childrens parents arent much better.

-Delta767300ER
 
Elite
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RE: How Is Hotel Industry Doing Today?

Wed Sep 03, 2008 1:31 pm

Certainly doing fine in Asia, Shangri-La Asia just reported that profits had grown by 15%.
 
babybus
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RE: How Is Hotel Industry Doing Today?

Wed Sep 03, 2008 1:37 pm

London hotel prices are coming down. Guess it's due to the bad weather and the credit problem.

You can't judge occupancy by the rate. High price as hotel full or it could be empty and the high price is paying for empty beds or low prices as rooms prone to building noise or cancelled conference.

I got stuffed by Sheraton at LHR. Cheaper room but building works outside window!  Angry
and with that..cabin crew, seats for landing please.
 
kiwiinoz
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RE: How Is Hotel Industry Doing Today?

Wed Sep 03, 2008 1:57 pm

Hotels exposed by a high reliance on the corporate market are struggling due to the whole credit situation in the US. Otherwise, things are OK.

In HK, this is having a strong affect, with the American finance market being such a strong consumer here.

Most hotel companies have quick fire distribution mechanisms if one of the segments starts failing. In particular, asian wholesale travel agent markets are a quick source of income

Food and Beverage is doing better than ever, and for the first time ever is strongly profitable, both in Europe and Asia, (USA and Oceania not yet in hotels).

Sorry if this makes no sense.......a few beers

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