Every year, the Hotel Business Green Book Directory & Market Guide offers insights from experts on a variety of industry subjects. This year, we are offering even more insight with Green Book Extra.
Here, John Fareed, ISHC, global chairman, Horwath HTL and Bram Gallagher, Ph.D. senior economist, CBRE, offer their thoughts on a return to fundamentals in the first half of 2022.
Where are we in terms of fundamentals for the first half of 2022?
Fareed: In an effort to better compete and meet traveling consumer expectations, I predict the industry will begin a return to the traditional fundamentals associated with overall guest satisfaction—getting back to providing true hospitality experiences—by staffing up to deliver more high-touch guest services from check-in to checkout including daily housekeeping and fully reopening food and beverage outlets.
Gallagher: This last quarter has demonstrated that rate can move very quickly and that people are ready and able to travel for leisure. Nationally, ADR in Q3 was $4 higher than in 2019. Demand, on the other hand, is still down around 9% from 2019, and in urban locations this drops to more than 23% lower than in 2019. Q3 was a strong surge for the leisure traveler, but if business travel can’t come back as strongly this winter these numbers will worsen before they recover.