Lodging market snapshot and updates, part 2
Morrissey Goodale continues their reports on the lodging market focusing on trends and drivers in the industry.
Last week’s post featured overview, size, and outlook information about the lodging market for engineering and construction. If you missed it, you can check it out here. This week highlights drivers, trends, and hot spots.
Drivers
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Leisure and business travel passenger volumes
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Population growth
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Macroeconomic conditions; disposable income
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Fuel prices
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Global health security
Trends
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By some estimates, about a third of corporate travel levels seen before the pandemic could be permanently impacted by the increase of remote work and related technologies. Business travel may see fewer trips but longer stays, which might drive up demand for extended stay or temporary housing property types.
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There is a strong focus by major players on ramping up loyalty programs, incorporating advanced technologies (including cybersecurity), and enhancing brand portfolios.
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Big hotel brands as well as franchised owner-operators will have cost challenges with building and improving properties. Design trends will be impacted and will aim to enable more flexibility.
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Hotels are adapting to meet travelers’ changing behaviors and preferences. As seen in many other industries, hotels are implementing energy-efficient and environmentally conscious systems.
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Outdoor recreation and wellness-related needs have been trending higher and may also impact design decisions.
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Many owners invested in digital transformations during the pandemic, which has opened opportunities to improve the guest experience. In addition, travelers will continue becoming more digitally savvy. An improved digital experience can not only optimize costs but also help owners mitigate risks related to the industry’s ongoing labor shortage.
Hot Spots
According to the U.S. Bureau of Economic Analysis, these states have experienced the fastest economic growth within the accommodation industry in recent years:
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Rhode Island
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Montana
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North Dakota
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Arkansas
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Utah
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California
These markets have performed the best (and above the U.S. average) in terms of growth in RevPAR (revenue per available room) in 2022 (Source: Cushman & Wakefield):
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Miami, FL
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Tampa, FL
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Phoenix, AZ
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Norfolk/Virginia Beach, VA
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San Diego, CA
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Orlando, FL
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Orange County, CA
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San Antonio, TX
– Morrissey Goodale is a CFE Media and Technology content partner.
Original content can be found at Morrissey Goodale.
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