Hotels Anticipate Strong Holiday Season Boosted by Surge in Business Travel
The hotel industry is poised for a vibrant holiday season in 2023, buoyed by an upswing in business travel. This optimistic outlook is reinforced by recent survey findings, suggesting a preference for hotel stays among both corporate and leisure travelers.
Key Survey Insights: A Surge in Business Travel
The American Hotel & Lodging Association (AHLA), in collaboration with Morning Consult, conducted a survey revealing significant trends. It found that 68% of U.S. respondents involved in jobs that require travel are likely to embark on overnight business trips in the last quarter of 2023. This marks a notable increase from the 59% recorded in 2022. Additionally, hotels are the preferred accommodation for 81% of these business travelers.
Holiday Travel Trends: Thanksgiving and Christmas
The consumer study indicates a rise in overnight travel during the holiday season. For Thanksgiving, 32% of Americans plan to travel overnight, up from 28% the previous year. Christmas sees a similar trend, with 34% inclined to travel, compared to 31% last year. Overall, 37% of participants are likely to travel overnight in the last three months of 2023, slightly down from 39% in 2022.
Reverting to Pre-Pandemic Norms
Travel attitudes are realigning with pre-pandemic patterns. A substantial 71% of respondents report that their likelihood of hotel stays is now similar to pre-pandemic levels. Nearly 70% of business travelers indicate that their employers have resumed normal or increased levels of business travel. This is a positive sign for hotels, as business travel is a crucial revenue source.
Additional Survey Findings
- Leisure Travel: 55% of Americans planning overnight leisure trips in Q4 2023 intend to stay in hotels.
- Increased Hotel Preference: 45% are more likely to choose hotels this holiday season than last year.
- Holiday Vacations: 44% expect to take more leisure trips or vacations this holiday season than the previous year.
- Thanksgiving and Christmas Stays: 59% of Thanksgiving travelers plan to stay with family or friends, with 30% choosing hotels. For Christmas, 62% will stay with family or friends, while 26% opt for hotels.
Workforce Challenges in the Hotel Industry
Despite the positive demand outlook, the hotel sector faces workforce issues, with about 85,000 open positions nationwide. The gap between job openings and available workers remains a challenge, as evidenced by Bureau of Labor Statistics data. Hotel wages have increased by 24.6% since the pandemic, outpacing the general economy’s growth rate.
AHLA’s Take on the Industry’s Future
Chip Rogers, President and CEO of AHLA, highlights the industry’s efforts to provide excellent guest care as travel nears pre-COVID levels. He points to the economic significance of America’s nearly 62,500 hotels and the need to address workforce challenges. Rogers suggests that Congress could aid the industry by passing relevant acts and exemptions to alleviate staffing shortages.
In conclusion, the hotel industry is set for a promising holiday season, driven by a resurgence in business travel and a return to pre-pandemic travel habits. However, addressing workforce challenges remains crucial for the industry’s full recovery and sustained growth.