U.S. Hoteliers tested by lack of visibility into demand
Hoteliers are trying to prepare for the post-Labor Day drop in leisure demand with little to no group or corporate business to replace it.
Now is the time of year when most hoteliers would normally say goodbye to the last of their summer leisure guests and welcome the return of groups, corporate and conference business. But clearly, this is not a normal year.
Now is the time of year when most hoteliers would normally say goodbye to the last of their summer leisure guests and welcome the return of groups, corporate and conference business. But clearly, this is not a normal year.
A significantly reduced amount of leisure travel kept hoteliers somewhat afloat over the summer, but now that the season has ended and kids are back in school, either in-person or remotely, hoteliers will certainly feel the absence of group and corporate demand this fall and winter.
So how are hoteliers preparing?
Demand and booking windows
The industry had been shaping up for a great fall for corporate business because the Jewish holidays fall on a favorable pattern and Halloween is on a Saturday, which would kill the week if it was on a weekday, Pebblebrook EVP and CFO Raymond Martz said. The vast majority of businesses continue to work from home partially or completely, and many schools are teaching remotely.
While this would normally be the time of year for leisure to drop off, he said this environment might create a demand for families or individuals looking to take weekend trips or even three-day weekends to "just get away otherwise they'll go crazy."
Looking at the demand available, the forward bookings through airlines show leisure hasn't fallen off as much as it usually does, he said. Leisure demand is down around 40% to 44% now compared to 90% back in April.