The devastating 7.8- and 7.5-magnitude earthquakes that hit southeastern Turkey near Syria on Feb. 6 have killed more than 36,000 people, and the death toll continues to rise. The earthquakes hit predominantly residential, non-tourist areas of Turkey, but came at a time when the country's hotel industry appeared to be fully recovered from the global pandemic.
Luxury hotels around the world continued their recovery in 2022 and more good news is on the horizon. High-end hotels in the Americas and the Middle East and Africa region, or MEA, nearly matched their demand numbers from three years ago. Demand for European luxury-class hotels was only off 12% from its 2019 high level. And now that China and Japan have ended their long pandemic shutdowns, this should spur intra-Asia travel as well as some additional international inbound demand.
Consumer-facing companies saw their prospects for growth buffeted by geopolitical and macroeconomic crosswinds in 2022. Leaders are still watching those conditions closely as they advance into 2023.
The U.S. hotel industry sold more rooms at higher rates in the week between the Christmas and New Year’s Day holidays than ever before, according to the latest weekly data from CoStar hospitality analytics firm STR.
Travel patterns normalized somewhat in 2022 as many countries across the globe loosened COVID-19 restrictions and booking windows increased. However, a lack of international travel, particularly from Asian countries, continues to be a concern for the U.S. hotel industry.
With the industry still in recovery, hotel owners, operators and brands found opportunities to grow their portfolios and their reach through acquisitions of other companies this year.
Highgate Hotels, which has more than 500 owned or managed properties globally, but not a true brand, has one now.
Hotels across Europe generally have struggled more than those in other regions, particularly the Americas, to recover to pre-pandemic performance levels due to restrictions on travel that lingered for much of 2022 and muted inbound international tourism.
Demand for hotel rooms picked up again after the week of Thanksgiving, and the U.S. hotel industry sold the second-highest number of rooms on record for this week.
U.S. hotel industry revenues have never grown during an economic recession, but Tourism Economics and CoStar's hospitality analytics firm STR is projecting just that to happen in 2023.
As work and leisure travel blend together, hospitality brands must adapt to this new landscape and evolve to meet shifting demands. Marriott International is leveraging its wide-ranging brand offerings for corporate and meeting customers, using its strength in technology, loyalty, service, and unique benefits to support today’s business travelers.
Business travel came back this year more strongly than most industry analysts had predicted in the depths of the pandemic, with domestic travel rebounding by this fall to about two-thirds of the 2019 level.
Thanksgiving travel is almost back to normal. More than 54.6 million Americans will travel at least 50 miles from home this week, up 1.5% from last year, according to automotive and travel club AAA. The number of travelers is at 98% of pre-pandemic levels in 2019. This, despite holiday travel set to be the most expensive in five years.
War on one side of the continent and a historic recession looming on the other aren't enough to dampen optimism for the European hotel industry.
The corporate travel industry is forecast to recover to 75 per cent of pre-Covid transactions by the end of 2022, according to the latest update from Advantage Travel Partnership.
What is the outlook for the travel industry from Wall Street analysts?
While group travel demand is showing clear signs of recovery, hoteliers across the U.S. are less positive about the health of business travel. As business from corporate accounts typically slows down in the fourth quarter, many hoteliers are now looking to the first quarter of 2023 for an improved mix of sales.
The summer in Europe and the U.S. has been especially good for tourism, and in turn for Accor. The Paris-based operator of about 5,357 hotels globally regained its pre-pandemic performance on key financial measures. This enhanced pricing power could help insulate the lodging company from rising inflation, by offsetting those costs with revenue gains on higher room rates.
There are only a couple of weeks left until the Labor Day holiday weekend arrives to kick off the U.S.’ fall travel season. While it’s been a crazy summer for travel, with most of the world opening up after over two years of COVID-related restrictions, Americans’ appetite for vacations isn’t satiated yet.
Though visibility overall has increased, U.S. hoteliers negotiating corporate accounts for 2023 are seeking the right balance of rates and services.