US lodging forecast: Record demand, room rates and RevPAR
May 20, 2005 |
Room rates are increasing as hotel executives, especially in urban and resort markets, respond to the strength of demand and try to "catch up" from the declines and small increases of the previous years.
PricewaterhouseCoopers forecast for the US Lodging Industry is for record demand of an average of 3.21 million occupied room nights per night between Memorial Day Weekend and Labor Day Weekend, a 4.7 percent increase over 2004 and a 6.2 percent increase over 2000. As a result, PwC forecasts that summer occupancy will be 71.4 percent; the highest since 2000 when occupancy was 72.1 percent (according to Smith Travel Research) but reflecting a strong 2.4 occupancy point increase over 2004 summer occupancy of 69.0 percent. Supply has increased 6.7 percent since 2000.
Summer room rates will be 4.5 percent higher than last year and 6.3 percent higher than 2000, achieving record highs.
RevPAR (Revenue per Available Rate) this summer will increase 8.1 percent over last summer and be 5.4 percent higher than 2000.
The PricewaterhouseCoopers Summer Lodging Forecast estimates that the Memorial Day Weekend occupancy level will be 73.9 percent, the highest since 2000, when occupancy reached 74.2 percent. Fourth of July weekend occupancy will reach 70.6 percent, a 4.7 percent increase over 2004. Labor Day Weekend occupancy is estimated to reach 72.3 percent, 2.5 percent higher than the level reached last year and a return to the level achieved in 2000.
According to Bjorn Hanson, Ph.D., global industry leader, PricewaterhouseCoopers Hospitality & Leisure Practice “room rates are increasing as hotel executives, especially in urban and resort markets, respond to the strength of demand and try to ‘catch up’ from the declines and small increases of 2001, 2002 and 2003. Adding to rate growth are the response to third-party and ‘merchant model’ control of some pricing by the larger brands, with more bookings through brand proprietary sites, and improved revenue and yield management systems that maximize revenue, especially in high occupancy periods.”
Related Articles
After Mumbai, debating security at luxury hotels
01 Dec, 2008 | Hospitality Industry
Strategies for booking hotels on a budget
01 Dec, 2008 | Hospitality Industry
Consumers switch, shout and sulk over hotel entertainment
01 Dec, 2008 | Hospitality Industry
Back-to-basics marketing tips for today’s challenging economic conditions
27 Nov, 2008 | Hospitality Industry
How to deliver a successful presentation
27 Nov, 2008 | Hospitality Industry
Travel industry loyalty programs need revamp
26 Nov, 2008 | Hospitality Industry
Hotels: managing in a downturn
26 Nov, 2008 | Hospitality Industry
Stuck in our business hotels
26 Nov, 2008 | Hospitality Industry
Sabre says most hotels passing rate-integrity test
25 Nov, 2008 | Hospitality Industry
Luxury business-traveler segment going away with great speed
19 Nov, 2008 | Hospitality Industry
Most Popular Articles
Travel: Weakening demand becomes falling demand
19 Nov, 2008 | Online Travel
The disturbing inaccuracy behind Google Analytics
18 Nov, 2008 | Internet Marketing
Expedia to restructure
18 Nov, 2008 | Online Travel
TripAdvisor wants your hotel website
20 Nov, 2008 | Hospitality Industry
Luxury business-traveler segment going away with great speed
19 Nov, 2008 | Hospitality Industry
Back-to-basics marketing tips for today’s challenging economic conditions
27 Nov, 2008 | Hospitality Industry
Hotels struggle, but guests less so
18 Nov, 2008 | Hospitality Industry
Highflying days over for online travel sites
02 Dec, 2008 | Online Travel
Expedia and Carlson Hotels launch flexible pricing pilot
25 Nov, 2008 | Online Travel
Marketers need to adapt to new economic conditions
19 Nov, 2008 | Internet Marketing
Economic Downturn
Highflying days over for online travel sites
02 Dec, 2008 | Online Travel
European online bookings to jump 19% this year
02 Dec, 2008 | Online Travel
Six economic survival steps, sans discounts
02 Dec, 2008 | Internet Marketing
When the going gets tough, the tough don’t skimp on their ad budgets
02 Dec, 2008 | Internet Marketing
UK travel industry in for ‘white knuckle ride’ in 2009
01 Dec, 2008 | Online Travel
Strategies for booking hotels on a budget
01 Dec, 2008 | Hospitality Industry
Back-to-basics marketing tips for today’s challenging economic conditions
27 Nov, 2008 | Hospitality Industry
Effective online marketing in a recession
27 Nov, 2008 | Internet Marketing
In tough times for travel business, Europe holds steady
26 Nov, 2008 | Online Travel
Budgets shrink, and holiday fares follow suit
26 Nov, 2008 | Online Travel
Hotels: managing in a downturn
26 Nov, 2008 | Hospitality Industry
Zuji survey with insights on travel in a downturn economy
25 Nov, 2008 | Online Travel
Travel: Weakening demand becomes falling demand
19 Nov, 2008 | Online Travel
Luxury business-traveler segment going away with great speed
19 Nov, 2008 | Hospitality Industry
Marketers need to adapt to new economic conditions
19 Nov, 2008 | Internet Marketing


















