Projections for a Strong Summer Travel Season Bode Well for Hotel Performance
- Room demand approaching record high. Despite headwinds like widespread inflation, increased borrowing costs and a slow recovery of business travel, the U.S. hospitality industry has remained resilient.
- Summer air travel expected to reach unprecedented levels. The strong labor market is instilling confidence in people to take more trips, even amid economic uncertainty and widespread inflation.
- Cost-cutting measures benefit certain segments. Although airline traffic is expected to reach a record level this summer, many travelers will engage in cost-saving strategies due to high inflation.
- Return of foreign travel speeds up recovery in gateway metros. Forecasts suggest nearly 63 million international travelers will visit the U.S. in 2023, a 21 percent increase from last year.
- Some headwinds remain. Staffing shortages could potentially cap occupancy and reduce the level of service guests receive in certain properties
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