RALEIGH, NC (WNCN) – Raleigh hotels expect to receive only about two-thirds of the revenue from business travel they had before the COVID-19 crash, a study shows.
A report released Tuesday The American Hotel and Housing Association and research firm Kalibri Labs are breaking down the expected spending of businesses on hotels this year compared to 2019.
He expects Raleigh hotels to receive just over $ 307 million this year – a 33 percent drop from about $ 450 million spent on business travel in 2019.
The trade group says holiday travel is expected to return to pre-pandemic levels, but business travel – the hotel industry’s biggest source of revenue – will take longer to recover.
At the national level, the trade group expects hotel business costs to fall by 23 percent to about $ 69 billion – about $ 20 billion less than it was three years ago.
This is an improvement: the association says hotels have lost more than $ 100 billion in business travel over 2020 and 21 years combined.
“While the reduction in COVID-19 cases and relaxed CDC recommendations give a sense of optimism for resuming travel, this report highlights how difficult many hotels and hotel staff will recover from years of lost revenue,” said Chip Rogers, president and CEO of the association. “The good news is that after two years of virtual work, Americans recognize the unmatched value of face-to-face meetings and say they are ready to get back on the road for business travel.”
San Francisco is expected to see the biggest drop in interest rates – 69 percent after more than $ 2.4 billion was spent on hotel business travel three years ago. It is expected that this year this amount will be only 762 million dollars.
At the state level, North Carolina hotels expect $ 1.8 billion in revenue from business travel – 19 percent lower than $ 2.2 billion in 2019, but a smaller drop than the national average.
The biggest percentage drop is expected in Wyoming (63 percent). Only five states expect increases, led by Nevada (17 percent) and Mississippi (7 percent).
The hotel trade group is waiting for another difficult year for business trips. How bad can it be in Role?
Source link The hotel trade group is waiting for another difficult year for business trips. How bad can it be in Role?