Would you look at how the United States hotel industry is suffering from the highest source of revenue with business travel? It’s remarkable how nuts this is. There has been a report coming in from the American Hotel & Lodging Association (AHLA) along with Kalibri Labs. Compared to 2019, hotels are actually on their way to earn 26% less from business travel in 2022. This equals to $722,329,630.
In Orlando, projected hotel business travel revenue, althroughout the state has gone down 11.1% to about a billion dollars less than what you might have found in 2019. From a West Palm Beach hotel, the revenue lowers down to 20.6% this year.
Business travel isn’t likely to entirely recover until about 2024. In that case, the data will end in 2022, with a large percentage decline.
In spite of the projected multi-billion dollar decline, there is still plenty to improve. When noticing the April 2022, AHLA report, the comparison is that leisure hotel bookings are heading up the need for demand for hotel rooms, with spending to come back to pre-pandemic levels in 2022.
How are Hotel Owners Responding to These Difficulties?
Chip Rogers, president and CEO of AHLA, seems to predict pretty well how tourism is hitting the business of hotels. “While dwindling COVID-19 case counts and relaxed CDC guidelines are providing a sense of optimism for reigniting travel, this report underscores how tough it will be for many hotels and hotel employees to recover from years of lost revenue. The good news is that after two years of virtual work arrangements, Americans recognize the unmatched value of face-to-face meetings and say they are ready to start getting back on the road for business travel.”
In the summer of 2021, the hotel industry was able to garner about $14 billion in PPP (Paycheck Protection Program) loans, which stem from the American Rescue Plan and the CARES Act.
There had been an investigation into how hotel chains would receive a huge amount of pandemic relief assistance by ProPublica. These hotels have more than 500 employees involved.
Of course, according to the AHLA, hotels are the singular segment of leisure and hospitality industry to receive direct aid.
COVID-19 definitely is the worse economic event in all of the history of the United States hotel industry. The urban markets are relying heavy on the business from events and group meetings.
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