Enterprise journey income down $59 billion in 2021
- The hotel industry is projected to lose more than $ 59 billion in business travel revenue by the end of 2021.
- The hotel industry lost nearly $ 49 billion in business travel revenue in 2020.
- Business travel is the hotel industry’s largest source of income.
The hotel industry is projected to decline more than $ 59 billion in business travel revenue by the end of 2021, compared to 2019, according to a report released today. It did so after nearly $ 49 billion in business travel revenue was lost in 2020.
Business travel is the hospitality industry’s largest source of income and has been slow to recover since the pandemic began. Business travel includes corporate, group, government, and other commercial categories. Business travel income is unlikely to hit pre-pandemic levels before 2024.
The new analysis follows a recent AHLA survey that found that most business travelers are canceling, reducing and postponing trips amid rising COVID-19 cases.
The absence of business travel and events has a significant impact on employment and underscores the need for targeted federal relief such as the Save Hotel Jobs Act.
Hotels are expected to cut nearly 500,000 jobs by the end of 2021 compared to 2019. For every 10 people directly employed in a hotel, hotels support a further 26 jobs in the community, from restaurants and retail to hotel supply companies – that is almost another 1.3 million. Hotel-sponsored jobs are also at risk.
“While some industries have recovered from the pandemic, this report is a sobering reminder that hotels and hotel workers are still struggling,” said Chip Rogers, president and CEO of the American Hotel & Lodging Association (AHLA).
“Business travel is critical to the viability of our industry, especially in the fall and winter months when vacation travel is typically in decline. Persistent COVID-19 concerns among travelers will only exacerbate these challenges. So it is time for Congress to pass the bipartisan Save Hotel Jobs Act to help hotel workers and small business owners weather this crisis. “
Although hotels are hardest hit, they are the only segment of the hotel and leisure industry that is still receiving direct aid. Hotels and their employees have shown exceptional resilience in the face of unprecedented economic challenges, and the industry needs the support of Congress to make a full recovery.