What: Hotel Bookings Are Almost Up to Pre-Pandemic Levels
According to a new report from the research firm Phocuswright, by the end of 2021, hotel bookings were back to 85% of pre-pandemic levels, indicating that a full recovery for the lodging sector is not far off. Phocuswright’s U.S. Hotel & Lodging Market Report 2021-2025 indicates that hotels now represent 51% of all U.S. travel gross bookings, and predicts that by the end of 2022 — with help from an increase in business and international travel, as well as groups and meetings — hotel and resort bookings will rise another 18%.
Why It Matters: The Hotel Industry Is Recovering Faster Than Other Travel Segments
Hotel gross bookings gained 65% year over year in 2021, while room occupancy ran between 60% and 80%. By 2023, hotel revenue is expected to recover to pre-pandemic levels, one of the first travel segments to do so.
This means the industry will most likely see a continued boom in bookings, which could make it tough to secure last-minute reservations at popular properties. Travel advisors may need to adjust clients’ expectations to avoid disappointment later. (Note: TravelAge West and Phocuswright are both part of Northstar Travel Group.)
Fast Facts: The Hotel Industry Will Fully Recover by 2023, Possibly
- According to the report, hotels still face many challenges, including the slow return of business travel and an ongoing labor shortage. For the second year in a row, occupancy was below 60% in 2021, a setback not seen since 2011, according to research firm STR.
- Although most indicators are positive, the report shows that hotel gross bookings will not return to pre-pandemic levels until 2023. To reach this milestone several events need to occur: a waning (or controlled) pandemic, at least a 75% return of business travel and strength in the U.S. economy.
- U.S. Hotel & Lodging Market Report 2021-2025 uncovers all the metrics that the hotel segment needs to make strategic decisions. These metrics include: the size and growth of the market; projections well into the future; how different channels perform; and booking patterns by consumers.
The Details
Phocuswright
