Hoteliers’ Expectations for Business Travel Plummet in February 20212 min read
The industry’s expectation for business travel (domestic and international) has reached an all-time low, according to the latest industry research published in the 11th Edition of The Hotelier PULSE Report.
The latest report, co-authored by Guestcentric and Great Hotels of the World as part of the ongoing Hotelier PULSE Report project, reveals that just over 18% of Hoteliers expect ‘Domestic Business Travel’ to contribute to the industry’s recovery once restrictions are lifted. The expectation for ‘International Business Travel’ is much lower, with just over 5% of Hoteliers surveyed expecting this segment to significantly contribute to the recovery.
On the other hand, nearly 50% of Hoteliers surveyed in January 2021 expect ‘Domestic Leisure Travel’ to be a major contributor to recovery. The expectation for ‘International Business Travel’ also continues to grow – up 3% from 22,89% of survey respondents in December 2020, to 25,88% today.
As a result of Business Travel’s downward trend, Hoteliers are strongly focused on adapting their offers and overall sales and marketing strategies to engage new markets. The same report reveals that nearly 50% of Hoteliers are focusing on creating new offers to generate new bookings. In addition, 40% of respondents are redesigning their sales and marketing strategies to attract new market segments.
City Center Hotels in particular, are completely revamping their offers in response to the rise of leisure travel. Once catering to groups and corporate segments with short-stays during the week, these hotels must now respond to the rising leisure segment – including families with children. Many hotels in this segment have now shifted their offer to suites and family rooms, with commercial activity shifting from weekdays to weekends.
Unsurprisingly, Resorts and Bed & Breakfasts in the countryside and more remote locations continue to perform better than hotels in the city. In some cases even better than in previous years.
While the industry’s average monthly occupancy expectation continues to register a downward trend, Resorts have consistently met or exceeded the occupancy expectation each month. Furthermore, the 11th Edition of The Hotelier PULSE Report also reveals that respondents from the Bed & Breakfast segment actually expect monthly occupancy to increase in February 2021.
All this emphasizes how the pandemic has significantly changed consumer behavior. Travelers are looking for open space, fresh air, and an escape from the hustle and bustle of the city.
What will the industry outlook be in March 2021?
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