Hotel Occupancy Rates Seen Improving for 2010

Deloitte's Hospitality Vision report confirms what most industry watchers know. In the U.S., the overall hotel RevPar (revenue per available room) dropped 1.3% from 2007 to 2008. But not all markets are the same. The following cities reported increases:

  • Dallas, TX
  • Houston TX
  • New Orleans, LA
  • Washington, DC

Vast differences in RevPar occur because of the:

  • Health of the local economy
  • Exchange rates — especially if the region has a larger than average number of international visitors
  • Popularity of specific trade shows or tourist attractions
  • Extent of hotel overbuilding

The report points out that further softness in hotel room demand, in general, is expected for 2009. By 2010, revenue and occupancy should begin to trend up. Share the specific market data in this report with your hotel clients and discuss whether launching a new B to C or B to B campaign makes sense.

[Source: Deloitte Hospitality Vision, released January 2009] 
Kathy Crosett
Kathy is the Vice President of Research for SalesFuel. She holds a Masters in Business Administration from the University of Vermont and oversees a staff of researchers, writers and content providers for SalesFuel. Previously, she was co-​owner of several small businesses in the health care services sector.