Tag Archives: hotel industry

Hotels Poised for Strong Holiday Season Powered by Uptick in Business Travel

Hotels continue hiring spree to meet demand, ask Congress for help with more workers

New York City’s Hotel Peninsula decked out for the holidays. The business outlook for hotels remains strong for the remainder of 2023 thanks to an uptick in business travel and a healthy preference among business and leisure travelers to stay in hotels, the AHLA forecasts © Karen Rubin/goingplacesfarandnear.com

WASHINGTON (Nov. 16, 2023) – The business outlook for hotels remains strong for the remainder of 2023 thanks to an uptick in business travel and a healthy preference among business and leisure travelers to stay in hotels.

According to a survey commissioned by the American Hotel & Lodging Association and conducted by Morning Consult, 68% of Americans whose jobs involve travel said they were likely to travel overnight for business during the last three months of 2023, up from 59% in 2022. Hotels are the top lodging choice for 81% of business travelers surveyed.

The survey found that 32% of Americans are likely to travel overnight for Thanksgiving, up from 28% a year earlier, while 34% are likely to travel overnight for Christmas, up from 31% last year. Meanwhile, 37% of Americans said they were likely to travel overnight for leisure during the last three months of 2023, down slightly from 39% in 2022.

The survey also found that travel attitudes have largely returned to pre-pandemic norms. 71% of Americans now say their likelihood of staying in hotels is the same as prior to the pandemic, and nearly 70% of business travelers say their employers have either returned to the pre-pandemic normal or increased amounts of business travel. This is good news for hoteliers, as business travel is one of hotels’ main sources of revenue.

The survey of 4,006 adults was conducted Sept. 18-23, 2023.

Other key findings:

  • 45% of Americans said they are more likely to stay in a hotel this holiday season than they were last year. 
  • 44% of Americans said they are likely to take more leisure/vacation trips this holiday season than they did last year.
  • 59% of those planning to travel overnight for Thanksgiving plan to stay with family or friends, while 30% plan to stay at a hotel.
  • 62% of those planning to travel overnight for Christmas plan to stay with family or friends, while 26% plan to stay at a hotel.

“Hotels are going above and beyond to take excellent care of guests as travel approaches pre-COVID levels, and this survey underscores that fact,” said AHLA President & CEO Chip Rogers. “America’s nearly 62,500 hotels are a bright spot for the nation’s economy. To continue growing, they need to hire more people, but a nationwide shortage of workers is preventing hotels from regaining all the jobs we lost to the pandemic. There are a number of steps Congress can take to help address our industry’s workforce challenges. Those include establishing an H-2B returning worker exemption, passing the Asylum Seeker Work Authorization Act, and passing the H-2 Improvements to Relieve Employers (HIRE) Act.”

More hotel industry facts:

According to Indeed, there are nearly 85,000 hotel jobs currently open across the nation.

As of September, the United States had 9.6 million job openings, but only 6.4 million unemployed people to fill them, according to the Bureau of Labor Statistics.

As of September, national average hotel wages were $23.36/hour.

Since the pandemic, average hotel wages (+24.6%) have increased more than 30% faster than average wages throughout the general economy (+18.8%).

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Hotel Association Launches ‘Safe Stay’ with Event in Hawaii

HONOLULU– To highlight American Hotel & Lodging Association’s commitment to hosting guests in a safe and clean environment, the organization is partnering with states and elected officials to launch a series of “Safe Stay” events across the country to increase awareness among travelers about the industry’s health and safety protocols. An event in Hawaii on May 5 was the first in this series.

With projections showing Hawaii is expected to be in the top five states with the highest number of hotel job losses for 2021, American Hotel & Lodging Association (AHLA) president and CEO, Chip Rogers and Hawaii Lieutenant Governor Josh Green joined in the event on May 5 to underscore efforts to bring hotel employees back as hotels prepare for summer travel.

In Hawaii, the total projected job loss for the year amounts to an estimated 20,029 jobs. Industry analysts estimate that hotel employment is unlikely to reach pre-pandemic levels until at least 2023, and recovery for the industry is not projected until 2024.

When selecting a hotel, enhanced cleaning and hygiene practices continue to rank as a guests’ number two priority, just behind price. At the onset of the pandemic, the hotel industry launched “Safe Stay,” an initiative focused on enhanced hotel cleaning practices, social interactions, and workplace protocols to meet the new health and safety challenges and expectations presented by COVID-19. These industry-wide guidelines were designed to prepare America’s hotels to safely welcome back guests and employees. 

Further, nearly half of consumers view vaccine distribution as a key to travel. As more Americans are vaccinated, the hotel industry is committed to promoting safe travel while also creating a standardized safety experience nationwide through the Safe Stay initiative.

With vaccinations and testing become more widespread, and infection and hospital rates declining, hotels are seeing an uptick in leisure travel, with 61% of Americans expected to travel for leisure this summer according to a poll conducted by Morning Consult and commissioned by AHLA.

But while leisure travel outlook continues to grow, the hotel industry is still hurting from this pandemic. Business travel is down 85% from pre-pandemic levels and is not expected to fully return until 2024. Unlike leisure travel, which can often be booked or changed at the last minute, meetings and events are scheduled months, if not years, in advance.

“Tourism is an important industry that brings thousands of jobs to Hawaii, supports the livelihood of many residents and provides resources for hospitals, schools and cultural and environmental stewardship,” saidLieutenant Governor Josh Green. “As we continue the COVID-19 vaccination rollout and maintain public health best practices, we are optimistic Hawaii can safely reopen for summer travel with the support of our hospitality industry.”

The event followed the introduction of the Save Hotel Jobs Act, introduced by U.S. Senator Brian Schatz (D-Hawaii) and U.S. Representative Charlie Crist (D-Fla.), which will provide targeted relief to the ailing hotel industry until travel returns to pre-pandemic levels. While many other hard-hit industries have received targeted federal relief, the hotel industry has not. In fact, hotels are the only major hospitality and leisure segment yet to receive direct aid. 

“While leisure travel will start returning this year as more and more people are vaccinated, business and group travel will take significantly longer to recover and is a major source of employment for the hotel industry. We remain optimistic, but the road to recovery for the hotel industry is long and we need support, especially in states like Hawaii. The Save Hotel Jobs Act will help support the hotel industry with targeted relief in order to stem permanent losses and keep hotel workers employed,” said Chip Rogers, president and CEO of AHLA. “As we begin to welcome back travelers, Safe Stay’s rigorous health and safety protocols, which were designed in accordance with CDC guidelines and reviewed by the CDC, will continue to help create peace of mind.”

The American Hotel & Lodging Association (AHLA) is the main national association representing all segments of the U.S. lodging industry. Headquartered in Washington, D.C., AHLA focuses on strategic advocacy, communications support and workforce development programs to move the industry forward. In the wake of the COVID-19 pandemic, hospitality was the first industry impacted and it will be among the last to recover. That is why AHLA is committed to promoting safe travel while also creating a standardized safety experience nationwide through the Safe Stay initiative. With an enhanced set of health and safety protocols designed to provide a safe and clean environment for all hotel guests and employees, hotels across America are ready to welcome back travelers when they are ready to travel. Learn more at www.ahla.com.

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Hospitality Industry Calls on Congress to Pass Save Hotel Jobs Act

Citing a loss of 3.1 million leisure and hospitality jobs lost during the coronavirus pandemic and with hotels expected to end 2021 down 500,000 jobs, the hotel industry is calling on to Congress to pass the Save Hotel Jobs Act © Karen Rubin/goingplacesfarandnear.com

Download Fact Sheet on 2021 State Job Loss Here

The American Hotel & Lodging Association (AHLA) released new data showcasing the ongoing devastating impact of COVID-19 on hotel industry employment, including projected hotel job loss through the end of 2021. Without targeted relief from Congress, nationwide, hotels are expected to end 2021 down 500,000 jobs. Hotels are the only major hospitality and leisure segment yet to receive direct aid.

The top five states projected to end 2021 down the highest number of jobs include:

  1. California: 67,169 jobs lost
  2. Florida: 39,560 jobs lost
  3. New York: 38,028 jobs lost
  4. Nevada: 22,282 jobs lost
  5. Hawaii: 20,029 jobs lost

The release of this data follows the introduction of the Save Hotel Jobs Act, legislation to provide targeted federal relief to the ailing hotel industry workforce including up to three months of full payroll support. AHLA and UNITE HERE, the largest hospitality workers union in North America, joined forces last week to call on Congress to pass the Save Hotel Jobs Act. The bill, introduced by U.S. Senator Brian Schatz (D-Hawaii) and U.S. Representative Charlie Crist (D-Fla.), provides a lifeline to hotel workers, providing the assistance they need to survive until travel returns to pre-pandemic levels.

Unfortunately, the road to recovery for the hotel industry is long, the AHLA stated. The recent uptick in leisure travel for spring and summer is encouraging for hotels, however, business travel—the largest source of hotel revenue—is down 85% and is not expected to begin its slow return until the second half of this year. Full recovery is not expected until 2024. 

“While many other hard-hit industries have received targeted federal relief, the hotel industry has not. The Save Hotel Jobs Act will provide critical support to hotels and their workers during this crucial period,” said Chip Rogers, president and CEO of AHLA. “We need Congress to pass the Save Hotel Jobs Act to help hotels retain and rehire employees until travel demand, especially business travel, begins to come back.”

No industry has been more affected by the pandemic than hospitality, the AHLA stated. Leisure and hospitality has lost 3.1 million jobs during the pandemic that have yet to return, representing more than a third of all unemployed persons in the United States, according to the Bureau of Labor Statistics. Even more stark, the unemployment rate in the accommodation sector specifically remains 330% higher than the rest of the economy.

Empty or permanently closed hotels have also had a ripple effect on communities throughout the country, hurting a wide range of businesses that rely on the presence of hotel guests, such as restaurants and retail, hotel supply companies and construction. For every 10 people directly employed on a hotel property, hotels support an additional 26 jobs in the community, from restaurants and retail to hotel supply companies and construction, according to a study by Oxford Economics. With hotels expected to end 2021 down 500,000 jobs, based on the pre-pandemic ratio, an additional 1.3 million hotel-supported jobs are in jeopardy this year without additional support from Congress.

This crisis has been especially devastating in urban areas, hurting minority communities, the AHLA stated. Urban hotels, which are more reliant on business and group travel and more likely to host larger events, ended January down 66% in room revenue compared to last year. According to recent reports, New York City has seen one-third of its hotel rooms—more than 42,000—wiped out by the COVID-19 pandemic, with nearly 200 hotels closing permanently in the city.

Read more about the Save Hotel Jobs Act here.

The American Hotel & Lodging Association (AHLA) is the main national association representing all segments of the U.S. lodging industry. Headquartered in Washington, D.C., AHLA focuses on strategic advocacy, communications support and workforce development programs to move the industry forward. In the wake of the COVID-19 pandemic, the hospitality industry was the first industry impacted, and it will be among the last to recover. That is why AHLA is committed to promoting safe travel while also creating a standardized safety experience nationwide through the Safe Stay initiative. With an enhanced set of health and safety protocols designed to provide a safe and clean environment for all hotel guests and employees, hotels across America are ready to welcome back travelers when they are ready to travel.

Learn more at www.ahla.com.  

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Hotel Industry Renews Call for Congress to Pass Another COVID Relief Bill Amid Dismal Holiday Travel Forecast

The hotel industry was the first impacted by the pandemic and will be one of the last to recover and is appealing to Congress for COVID-19 relief. The industry is assuring travelers “for those who are considering traveling for the holidays, hotels will be ready to welcome you. Through our Safe Stay initiative, hotels have enhanced our already rigorous cleaning protocols to be more transparent and give travelers even more peace of mind.” (c) Karen Rubin/goingplacesfarandnow.com

WASHINGTON (November 12, 2020) – A new national survey commissioned by the American Hotel & Lodging Association (AHLA) shows that many Americans are not expected to travel this holiday seasons. Results show that 72% of Americans are unlikely to travel for Thanksgiving and 69% are unlikely to travel for Christmas, compounding the challenges for the hotel industry during this public health crisis.

Business travel has been even more impacted. Only 8% of Americans say they have taken an overnight business trip since March, and just 19% of respondents who are currently employed—or 8% of all adults—expect to travel for business within the next six months. Sixty-two percent (62%) of employed Americans have no plans to stay in a hotel for business.

The survey of 2,200 adults was conducted November 2-4, 2020 by Morning Consult on behalf of AHLA. Key findings of the survey include the following:

  • Only 3 in 10 (32%) respondents have taken an overnight vacation or leisure trip since March
  • 21% of Americans say they are likely to travel for Thanksgiving, 24% are likely to travel for Christmas
  • Looking ahead to next year, 24% are likely to travel for spring break 
  • 44% say their next hotel stay for vacation or leisure travel will be a year or more from now or they have no plans to stay in a hote

“This holiday season will be an especially difficult time for all Americans, and our industry is no exception” said Chip Rogers, president and CEO of the American Hotel & Lodging Association. “Fewer people will be traveling, and business travel remains nearly non-existent. That’s why it’s so important for Congress to pass a relief bill now. Millions of Americans are out of work, and thousands of small businesses are struggling to keep their doors open. We cannot afford to wait until the next Congress is sworn in for relief. They need help now.”

“For those who are considering traveling for the holidays, hotels will be ready to welcome you. Through our Safe Stay initiative, hotels have enhanced our already rigorous cleaning protocols to be more transparent and give travelers even more peace of mind,” said Rogers.

The hotel industry was the first impacted by the pandemic and will be one of the last to recover. Hotel occupancy rates partially rebounded from record lows in April, but they have continued to decline since Labor Day. According to STR, nationwide hotel occupancy was 44.4% for the week ending October 31, compared to 62.6% the same week last year. Occupancy in urban markets is just 35.6%, down from 71.8% one year ago.

As a result of the significant drop in travel, more than half of hotels report they have less than half of their typical, pre-crisis staff working full time currently. Without further governmental assistance, 74% of hotels said they would be forced into further layoffs. Business and group travel are not expected to reach 2019 peak demand levels again until 2023. As a result of the sharp drop in travel demand from COVID-19, state and local tax revenue from hotel operations is estimated to drop by $16.8 billion in 2020. 

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Hotel Industry on Brink of Collapse Releases Roadmap to Recovery

Wentworth By the Sea, a grand historic resort on New Castle island, off Portsmouth, NH (c) Karen Rubin/goingplacesfarandnear.com

WASHINGTON D.C. – With new data from the Bureau of Labor Statistics (BLS) showing staggering job loss to the hospitality and leisure industry, the American Hotel & Lodging Association today released a “Roadmap to Recovery,” calling on Congress to prioritize relief for hotel workers and small businesses in the next stimulus package. The April Jobs Report showed the hospitality and leisure industry was the hardest hit, losing 7.7 million jobs—nearly as many jobs as the next four sectors combined. (Click here to read AHLA’s letter to Congress.)

AHLA is urging Congress to provide immediate assistance in these four areas:

  • Help hotels retain and rehire employees by extending the Paycheck Protection Program, offering employees direct tuition assistance or tax credits, and expanding the Employee Retention Credit

  • Protect employees and guests through tax credits for cleaning equipment and personal protective equipment (PPE)

  • Keep hotel doors open by providing relief for hotel commercial mortgages and increasing the size and flexibility of PPP loans

  • Incentivize Americans to travel again when it’s safe with a new, temporary travel tax credit and restoring the entertainment business expense deduction

“The hospitality industry is in a fight for survival,” said Chip Rogers, president and CEO of AHLA. “We are grateful to the leadership of both parties during one of the most difficult health and economic challenges we have faced. We are urging Congress to do even more to help the hotel industry so that our small business hotel operators can keep the lights on and retain and rehire employees.”

COVID-19 continues to devastate the hotel industry: 2020 is projected to be the worst year on record for hotel occupancy, and experts estimate it will be at least 2022 before hotels return to their 2019 occupancy and revenue levels. So far, the impact of COVID-19 on the travel industry has been nine times worse than September 11. In a recent survey of AHLA members, more than 8 in 10 hotel employees said they have had to lay off or furlough workers. Only 37 percent have been able to rehire any staff through economic relief measures such as PPP.

With a presence in every congressional district in America, hotels are central to getting our economy back on track and supporting millions of jobs. Prior to the pandemic, hotels were proud to support one in 25 American jobs—8.3 million in total—and contribute $660 billion to U.S. GDP. A representative hotel with 100 occupied rooms per night supports nearly 250 jobs in the community and generates $18.4 million in guest spending at neighborhood shops and restaurants. Hotels also generate $186 billion in local, state, and federal taxes each year.

“While the hotel industry was one of the first affected by the pandemic, we have collectively stepped up to serve our communities during this public health crisis. We need Congress to continue to prioritize the industries and employees most affected by the crisis, so we can retain and rehire the people who power our industry, our communities and our economy,” concluded Rogers.

Click here to download the hotel industry’s Road Map to Recovery one-pager.

Click here to read AHLA’s letter to Congress.

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