Bailout

Hotel RevPAR off 10.4 Percent

By Anonymous

Overall, in year-over-year measurements, the industry?s occupancy decreased 3.9 percent to end the week at 40.5 percent. ADR dropped 6.8 percent to finish the week at US$91.85. RevPAR for the week fell 10.4 percent to finish at US$37.21.

This graph shows the occupancy rate by week for 2008, 2009 and 2010 - plus an average (dashed line) for 2005 through 2007.

2010 is in Red - and it has just started (see far left).

Notes: the scale doesn't start at zero to better show the change.

Data Source: Smith Travel Research, Courtesy of HotelNewsNow.com

The above graph shows two key points:

There is a distinct seasonal pattern for the occupancy rate. The occupancy rate is higher in the summer (because of leisure travel), and lower on certain holidays.

The HotelNewsNow press release also has this graph on occupancy variance compared to 2009.

This shows that business travel (mid-week) was off more than leisure travel (weekends).

Business travel fell off a cliff in late 2008 with the financial crisis, and has been off significantly more than leisure travel. It is surprising, given the easy comparison to 2009, mid-week travel is still off more than weekend travel. This is something to watch carefully.

This is just one week, but it suggests businesses might still be tightening their travel budgets.

Full post as published by Calculated Risk on January 14, 2010 (boomark / email).

Bloggers, promote your law blog by nominating your blog for inclusion in USLaw.com's Law Blog Directory and RSS Reader. Benefits described.

Lawsuits and Settlements

Westin Hotel
Undisclosed settlement in valet driver negligence lawsuit.

Kahala Hotel?|
Faces Suit over Service Fees

Hotel Food Poisoning
Thomson Holiday and JMC-Thomas Cook awards British travelers a £2.5 million personal injury settlement.

Related Searches