We’ve shown how hotels are adopting ways to appeal to a wider range of travelers through greener, healthy initiatives such as electric vehicle charging stations , using greener products in hotel rooms and sustainable attitudes to furniture assets. The hotel industry is certainly on the right track to recovery. However, the most important figure, the bottom line, still isn’t showing the levels of improvement everyone had anticipated.
For the complete recovery of the hotel industry, it’s essential that rates must go up to offset the amenities hotels are providing for guests. This year, according to Marriott president Arne Sorenson , those rates still aren’t bouncing back despite an overall increase in travel. Hotel rates remain ten percent lower than they were in 2007, the year before economic turmoil all but destroyed the hospitality industry. This is still an improvement over room rates from 2008-2009 which saw revenue per room drop 25 percent – the worst ever for the Marriott chain.
These issues were of course widespread throughout the industry. Thankfully, there was only one direction to go, and that was up. Even though rates are still not where they need to be, hotel chains are at least experiencing an increased volume of guests. Soon, as Marriott has demonstrated, rates will slowly climb and become what they once were before the depression. Demonstrating that there is positive and lasting growth taking place, Marriot has responded by announcing plans to build 50 international hotels over the next four years.
Hotels are experiencing a slow but steady growth trend. As long as smart decisions are being made by the industry and guests continue to flock to hotels this summer and beyond, we can expect to see our friends in hospitality completely recover and begin experiencing the levels of success they once had.