The euphoria has taken hold. And for good reason too.
From the looks of the state of the hotel industry, we think everyone should be feeling jubilant. And if you’re not, it’s either time to reevaluate what you are doing or get a new career.
These are the halcyon days my friends, a period of history that will be looked back at with and a special reverence. In 10 years these will be the ‘great old days’ and remembered as a unique time in the hospitality industry when the stars of the universe aligned creating a perfect moment.
That moment is now, and trends indicate continued goodness coming our way for several years as the hotel industry is reaching new heights and taking those 2007 records, laughing at them and stomping them.
Why? Because according to STR, for the first five months in 2013 all-time highs have been set for RevPAR, room demand, occupancy, room revenue and ADR.
And attendees at this year’s sold out BITAC® Purchasing & Design East are echoing these sentiments. BITAC® of course is the industry leading one-on-one meetings and relationship building event. Taking place ocean side at The Westin Diplomat, BITAC® attendees are the ultimate group of insiders and decision makers. And they’re all here to come together for the most exciting BITAC® to date to problem solve, network, sign deals and swap their thoughts they believe will move forward the quality of experiences for hotel guests while adding profits to the bottom line. But also to cut loose, be social and network in a luxurious and relaxed environment.
At this year’s BITAC® P&D East we are once again looking to the conference’s brain trust to make the news. We love engaging our attendees and having them make the news and our advanced real-time polling system allows us to get the facts about the most critical business issues.
Here is what BITAC® attendees think about the state of the industry.
When asked about how people are feeling about the state of the economy BITAC® attendees are extremely happy. Here’s why: During the first five months of 2013 RevPAR is up 5.6 percent while room demand is up 2.8 percent. Other indicators are also at all- time highs as occupancy is up 2.0 percent to 60.2%; Room Revenue is at $48b, a 7.1% increase and ADR is $109 4.2, according to STR.
And industry employment s soaring too. Since 2010 more than 500,000 travel jobs have been added, 22,600 alone in June, according to U.S. Travel Association. Additionally, employment growth in the travel industry has outpaced employment growth in the rest of the economy by 25 percent since March 2010 and monthly job growth in the travel industry is averaging 19,000 per month so far in 2013, that’s more than twice the average gain of 9,100 travel jobs per month in 2012.
Here’s what BITAC® attendees think about the latest issues:
How are you feeling about the state of the economy?
Bullish - 15.0%
It’s good - 63.8%
Neutral - 13.1%
A Little Worried - 8.1%
Freaked Out - 0.0%
Are you personally feeling more economically confident this year?
Very much so: 35.4%
I’m a bit nervous: 9.5%
I am feeling extremely conservative: 2.1%
Are your hotels breaking records on key fundamentals such as ADR & RevPAR?
We are breaking records!: 36.4%
We are close, but not yet: 45.5%
Not happening for us: 15.2%
Our numbers stink: 3.0%
How do you see customer spending in hotels?
They are spending freely: 13.8%
They are spending, but not like before the Great Reception: 63.8%
They are conservative in their spending: 21.3%
They’re wallets are stuck shut: 1.3%
How much have you raised your ADR so far in 2013?
Between 1-2%: 12.4%
Between 3-5%: 42.7%
Between 5-10%: 30.3%
Between 10% or more: 9.0%
Is your company adding jobs this year?
We are adding many: 21.4%
We are adding some: 49.4%
We to plan to, but have not yet made new hires: 19.0%
We do not plan to add jobs this year: 10.1%