Occupancies at US Accommodations Are at an All Time Low
With the COVID-19 pandemic successfully halting tourism world wide, motels are dealing with a tough yr with terribly low occupancy charges. Within the U.S. particularly, STR and Tourism Economics predict that RevPAR will drop 50.6 p.c this yr.
STR had initially anticipated occupancy to solely drop 0.three p.c earlier than the USA declared a nationwide emergency. Provide and demand had been anticipated to extend by 2 p.c.
Now, in keeping with Journey Weekly, occupancy is predicted to fall by 42.6 p.c to 37.9 p.c whereas provide and demand could drop 14.9 p.c and 51.2 p.c, respectively.
“The trade was already set for a nongrowth yr; now throw on this final ‘black swan’ occasion, and we’re set to see occupancy drop to an unprecedented low,” stated Jan Freitag, STR’s senior vice chairman of lodging insights. “Our historic database extends again to 1987, and the worst we’ve got ever seen for absolute occupancy was 54.6% throughout the monetary disaster in 2009.”
Whereas STR noticed the steepest U.S. RevPAR decline in 30 years the week of March 21, Tourism Economics stays optimistic that the lodge trade will see a fast rebound as soon as the pandemic is over. The president of Tourism Economics, Adam Sacks, predicts “the market to start to regain its footing this summer time.”
STR and Tourism Economics count on that U.S. lodge RevPAR will improve 63.1 p.c in 2021, with occupancy growing 57.three p.c to 59.7 p.c and provide and demand growing by 15.6 p.c and 81.eight p.c respectively.