The last few years were tough on the average consumer, with the economic recession impacting the spending habits of many Americans. Like a number of other sectors, those in the hospitality industry acutely felt the effects of tourists opting to stay at home rather than venturing out into the world.
However, summer is here and many industry experts expect things to change this year. The economy has been rebounding slowly while consumers have also grown more adventurous with their coin purses. As Hotel News Now recently observed, early indicators suggest this summer could be a return to prosperity for many businesses in the hospitality sector.
Reasons to be optimistic
A number of surveys conducted earlier this year indicate hotel management has grown more optimistic. While many hospitality professionals know the economic recovery is just beginning, they've already begun planning for better business.
First and foremost, occupancies have been on the rise since last December, signifying consumers are getting out of the house and traveling more often - a big plus for hotels and lodging businesses.
Recent data from research firm STR indicates hotels posted strong numbers in both May and June. Occupancy saw a 3 percent lift during the second week of June, while the average daily rates rose 3.5 percent. Revenue per available room also surged 6.6 percent.
While these are encouraging numbers, it's also crucial that hotel owners keep their expectations in line. All three key metrics grew in June and they're up over the same time last year, but last year was notably slow compared to industry standards.
Cabin fever drives travel
Another source may be driving more travel as well, notes the source: "Cabin fever." After planning conservative vacations for the past year to cut costs, many Americans are now looking to get out and travel.
"For families and hoteliers around the country, the return to the traditional summer vacation for many travelers who had canceled or delayed trips in recent years comes as a welcome relief," explains Hotel News Now.
Managing expectations
While STR's reports indicate increases in occupancy, research conducted by other companies suggest the hotel industry isn't out of the recession yet. A new report from PFK Hospitality indicates unemployment rates are still hindering revenue growth, causing the organization to scale back its 2011 forecast of 7.1 percent RevPAR to 6.9 percent.
Recent trends in hospitality highlight the importance of procurement solutions. With more consumers staying at hotels, owners and managers will need to have the supply of products ready to meet increased demand. There is nothing worse than booking travelers and not having all the supplies necessary to accommodate their visit.