The remainder of the decade shows promise for the US hotel industry, with forecasts predicting record occupancy thanks to the strong economic growth and increased demand the sector is currently experiencing.
Setbacks, however, including increased supply, the impact of discounted loyalty rates and competition from private accommodation will affect the growth of average daily rate (ADR).
Though room revenue gains fell in 2016, after two years of high single-digit growth, hotels are projected to see year-over-year gains over the next few years. And despite a lull, hotel ADR continues to surpass GDP.
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A new report from Phocuswright surveys the distribution landscape as hotels endure the battle against online travel agencies – most notably, Expedia Inc. and Priceline.
US Hotel & Lodging: Loyalty Rates Make Impact, written by Lorraine Sileo, examines consumer preference –OTAs over direct bookings – as well as how hotels have negotiated with travel giants to secure lower commissions as part of both parties’ quest to find equilibrium.
The report is FREE for existing Phocuswright Global Subscribers (learn about how to become one here).