World Lodge Demand Uptick Tussles With Competing Prices
Travelers get back on planes or leave for a much-needed break from the monotony of home and Netflix congestion.
- According to the TSA, 2,137,584 people passed US airports on June 25, 2021.
- In the United States, where many states and communities continue to relax COVID protocols, hotel revenues continued to rise in May.
- Europe’s hotels are lagging behind other regions as many countries continue to apply regulations preventing a travel comeback.
As the global pandemic shows some signs of easing, the collective hospitality industry will reap the rewards as travelers get back on planes or head off for a much-needed break from the monotony of work at home and Netflix congestion. The hotel industry is happy to welcome you again, but a persistent loss of sales – the product of some segments, such as B. Corporate and Group – which is supplemented by cost creep and an all too difficult labor market, has consequences. in the bottom line.
The US push
According to the TSA, 2,137,584 people passed US airports on June 25, 2021, 78% of the total on June 25, 2019 and 237% more than on June 25, 2020. People are moving again, which means that they stay in hotels again.
In the United States, where many states and municipalities continue to relax COVID protocols, sales continued to climb in May. RevPAR rose 539% year over year, but was still 51% lower than in May 2019. With room revenue up by Leisure, total revenue followed, up to $ 127 per available room, up 541% over there the same period last year.
Labor costs have risen nearly $ 20 per available room since last May, a price that should continue to rise as hoteliers find they need to spend more and create incentives to lure employees who are either still reluctant to return to the hospitality industry or have switched careers ways.
Gross operating performance per available room reached $ 40.55 in May, up 319% over the same period last year, but 63% less than in May 2019.
Europe is still stuck
Europe’s hotels are lagging behind other regions as many countries continue to apply regulations preventing a travel comeback. In May, hotels were only able to raise a TRevPAR of $ 49.83, resulting in an almost balanced GOPPAR of € 2.52, which, while extremely low, was actually the first month of positive profit for the region since September 2020.
The total labor cost was € 23.76 per month, 46.8% more than at the same time last year and only € 6 less than the RevPAR of the total rooms.
APAC steady increase
In the Asia-Pacific region, heavy domestic travel has a profound impact on hotel performance in the region. RevPAR hit $ 59.07 for the month, up 141% from the same time a year ago. It was supported by nearly 50% occupancy and rising ADR, which hit $ 118 for the month. The TRevPAR of $ 106.39 was the result of a sustained spike in ancillary income as the F&B RevPAR hit $ 40.77 in May, 152% higher than the same time a year ago.
Revenue includes overheads, which was $ 30.26 per room available, 44.9% lower than last year and $ 12 lower than May 2019. The GOPPAR for the month was $ 27.55, a sharp 1,040% increase from May 2020 but still less than half of May 2019.
Middle East is making its mark
Similar to APAC, the Middle East is experiencing a nice recovery due to higher interest rates and increasing occupancy rates. The RevPAR for the month was $ 76.57, up 222% year over year, resulting in a TRevPAR of $ 120.88, up 228% over the same period last year.
While labor costs remain constant at just under $ 40 per available room, GOPPAR hit $ 37.29 in the month, 430% more than the same time a year ago. The Middle East has now had positive earnings growth for 10 months in a row.
