The American Hotel & Lodging Association (AHLA) yesterday launched “AHLA’s State of the Hotel Industry 2021” outlining the forecasted state of the hotel business in 2021 and into the immediate future. The report examines the high-level economics of the hotel business’s restoration, the precise influence on and the eventual return of business travel, and client travel sentiments.
The pandemic has been devastating to the hospitality industry workforce, which reduces almost 4 million jobs in comparison with the same time in 2019. Whereas some 200,000 jobs are anticipated to be filled this yr, total, the lodging sector faces an 18.9% unemployment rate, based on the Bureau of Labor Statistics. As well as, half of U.S. hotel rooms are projected to stay empty in 2021.
Business travel, which comprises the largest source of hotel income, stays practically nonexistent, however, it’s anticipated to start a sluggish return within the second half of 2021. Amongst frequent business travelers who’re at the moment employed, 29% anticipate attending their first business conference within the first half of 2021, 36% within the second half of the yr, and 20% more than a yr from now, the business travel shouldn’t be anticipated to return to 2019 levels till at least 2023 or 2024.
Leisure travel is predicted to return first, with consumers optimistic about the nationwide distribution of a vaccine and with that the capability to travel again in 2021. The report discovered that heading into 2021, customers are optimistic about travel, with 56% of Individuals saying they’re more likely to travel for leisure or trip in 2021. Whereas 34% of adults are already comfy staying in a hotel, 48% say their comfort is tied to vaccination in some way.
The top findings from this report include:
A) Hotels will add 200,000 direct hotel operations jobs in 2021 however will stay nearly 500,000 jobs under the industry’s pre-pandemic employment level of 2.3 million employees.
B) Half of U.S. hotel rooms are projected to remain empty.
C) Business travel is forecasted to be down 85% compared to 2019 via April 2021, and then only begin ticking up slightly.
D) 56% of customers say they expect to travel for leisure, roughly the same amount as in an average yr.
E) Nearly half of consumers see vaccine distribution as key to travel.
F) When selecting a hotel, enhanced cleaning and hygiene practices rank as visitors’ quantity 2nd priority, behind price.
“COVID-19 has wiped out 10 years of hotel job progress. But the hallmark of hospitality is countless optimism, and I’m assured in the future of our business,” stated Chip Rogers, president, and CEO of AHLA.
“Regardless of the challenges going through the hotel business, we’re resilient. Hotels across the nation are centered on creating surroundings ready for friends when travel begins to return. AHLA is keen to work with the new Administration and Congress on insurance policies that can ultimately assist bring back travel, from serving to small business hoteliers maintain their doorways open to ramping up vaccine distribution and testing. Collectively, we are able to deliver again jobs and reignite continued funding within the communities we serve,” stated Rogers.
The resurgence of COVID-19, the emergence of recent strains, and a sluggish vaccine rollout have added to the challenges the hotel business faces this yr. With travel, demand continuing to lag regular levels, nationwide and state projections for 2021 show a slow rebound for the business after which accelerating in 2022.
The hotel business skilled probably the most devastating yr on a report in 2020, leading to traditionally low occupancy, large job loss, and hotel closures throughout the nation. Hotels have been one of many first industries affected by the pandemic after travel was pressured to a digital halt in early 2020, and will probably be one of many final to get well.
