While leisure travel has actually been the lone saving grace for the hotel market because the beginning of the COVID-19 pandemic, hotel sales and marketer think business mix could grow more varied in 2022.
Over the past 2 years, the hotel market has actually seen little to no business transient service, but hoteliers say that might change this year.
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Will Traywick, vice president of marketing at Prism Hotels & & Resorts, stated theres indicators of a minor shift. Its expected that a lot of markets in the U.S. will understand an increase in business travel compared to 2021 and 2020. There will be an ongoing focus on the strength of leisure travel.
Who is Traveling and Why
In 2020 and 2021, Traywick said there was an uptick in social group travel as particular jurisdictions relieved restrictions. Organization on the books now shows 2022 will have more business groups tossed into the mix of those who are prepared to travel, albeit on smaller scales than in 2019.
” I think everybody is still careful about [first quarter], especially with the most recent version,” he said. “Going into [2022], were seeing our sales group booking levels return back from reserving as much service in October and in November of [2021] that we carried out in 2019 for future months. Granted, on top of that, leisure is still extremely strong.”
Particular segments like medical, building, oil and gas remained healthy during the pandemic but other segments like technology are getting, he said.
He included those that are taking a trip for meetings are doing so due to the fact that its necessary.
” All of our sales leaders have been in extremely close contact with our conference and travel experts, whether it be group or organization transient, through the entire pandemic. What were hearing from a great deal of larger negotiated accounts is that theyre not even returning yet back to the office,” he stated.
Urban and big gateway markets continue to lag in regards to tenancy and revenue per offered room compared to 2019 levels, he said. From a year-over-year point of view, though, urban locations are growing after being severely depressed. New York City and Chicago are 2 particular markets that are ramping back up.
” We do see a few of the smaller business– local negotiated accounts– want to have more local, bigger groups,” Traywick said.
Gilbert Arredondo, divisional vice president of profits technique at Remington Hotels, said his business is beginning to see more business and convention group reservations for April and onward into the second quarter of 2022. However, he stated its not “back to regular however better to back to regular.”
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Its prepared for that a lot of markets in the U.S. will recognize an increase in business travel compared to 2021 and 2020. There will be a continued focus on the strength of leisure travel.
, particularly with the most recent variant,” he said. Urban and big entrance markets continue to lag in terms of tenancy and income per available space compared to 2019 levels, he stated. New York and Chicago are 2 particular markets that are ramping back up.
