The Refinishing Touch Blog

According to a recent Reuters article, the hotel industry, while beginning to show promising signs of recovery, faces a slow climb back to pre-recession standings. PKF Hospitality Research expects a drop in revpar (a measure of occupancy and room revenue) of only 1.1 percent, well below the 17 percent drop it experienced in 2009. Additionally, last year's occupancy rate of 55.1 percent is expected to rise to 55.4 percent this year, according to PricewaterhouseCoopers. Although it's a small gain, it's a step in the right direction.

While hotels now must take action to expedite the a long trek towards recovery, the fate of the hospitality industry is tied to the rest of the economy; once more people get jobs, they'll travel more, both for business and leisure. When travelers do return, they'll find that excess is out of style as corporate spending has gotten leaner and luxury purchases are on the wane. Mike Shannon of KSL Capital Partners argues that affordable luxuries are back in style, and makes the claim "It's the $200 Lomilomi massages in Hawaii that are not doing so well."

As customers are adopting a no-frills style for traveling, hotels can follow suit. The hospitality industry needs to find success without a dependency on frivolous spending. Some of this goes into what we discussed about travel resolutions. When travelers walk or take public transit, they save on spending and help the environment in the process. When hotels opt for a linen reuse program, they save on energy expenses and do the same. As hotels and their clientele take the extras out of their traveling, customers will have more money for just that: their traveling.

The economy will eventually improve, but hotels don't have to wait for it. Hotels can find success without excess and adopt practices to help them thrive in any economic environment.