State of the Lodging Industry
The lodging industry has seen improvement since the economic downturn of late 2007. There are factors beyond the industries control that could stifle growth in the industry, including but not limited to the still weak global economy and governmental breakdown. Since 2010, the industry has seen steady growth in average daily room rate (ADR), revenue per available room (RevPAR), revenue and net income. The have either reached or almost reached pre-downturn (2007) rates. Room construction in much of the United States has also started to rise again but at a slower rate than the financial indicators.
Most of the industry growth continues to be in the transient market. Cutbacks in business and government spending have held back the growth of the group and business markets, however, they are expected to continue to increase. Many in the hotel industry have taken on the addition of fees to increase revenues for such services as safes, parking and business centers.
The U.S. lodging industry would receive a boost should the Jobs Originated through Launching Travel (JOLT) Act. Introduced in March of 2013 and currently in committee for consideration, this bill will ease visa processing and grant certain individuals longer stays in the U.S. This bill is expected to substantially increase the number of visitors to the U.S. and increase employment.
According to the Conference Board Inc., the consumer confidence index at 79.7 in September 2013 up from the recession low of 25.3 in February 2009, but still below levels above 100 considered normal during a typical economic recovery. In addition, US Department of Commerce determined Americans’ real disposable personal income increased 3.9% ...
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InterContinental Hotels Group (2012) Annual Report 2012. Retrieved from http://www.ihgplc.com/index.asp?pageid=56&data=Reports
Kwon, E. (n.d.). Lodging & Gaming. Standard & Poor's Capital IQ. Retrieved December 1, 2013, from http://www.netadvantage.standardandpoors.com.ezproxy.bu.edu/NASApp/NetAdvantage/showIndustrySurvey.do?task=showIndustrySurvey&code=lng
Marketline. (2012, November 19). InterContinental Hotel Group Plc Retrieved from Business Source Complete database.
Marketline. (2013, July 30). Marriott International, Inc. Retrieved from Business Source Complete database.
Marriott International, Inc. (2011) Annual Report 2011. Retrieved from http://investor.shareholder.com/mar/reports.cfm
Marriott International, Inc. (2012) Annual Report 2012. Retrieved from http://investor.shareholder.com/mar/reports.cfm
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