The Industry’s Pace of Recovery Room & Group Demand Indicators show the level of business events being held globally, such as conferences and meetings, are still very much in recovery mode but there is also reason for optimism on the industry’s return to levels experienced prior to 2020. During the IACC Americas Connect conference at the end of May, Aran Ryan, Director of Lodging Analytics Tourism Economics at Oxford Economics reported STR group demand data that places group demand 19% behind 2019 levels in March 2022. This is an improvement from a 45% deficit reported in January 2022.
Room Demand Relative to 2019 Monthly, Actual
-3.1%
0%
-19.3%
-20%
Total Demand (STR)
-24.8%
-40%
-60%
DMO Group Room Nights
-80%
Group Demand Upper-Tier Hotels (STR)
-100%
Jan Mar May Jul Sep Nov 2020
Jan Mar May Jul Sep Nov 2021
Jan Mar 2022
Adam Sacks, President of Tourism Economics reported in June that ADR in the US in May was +13%, but this is pretty flat in real terms. Susan Liston , SVP Growth, Aramark Destinations comments “We find buyer confidence has been increasing over the past 12 months but hasn’t reached 2019 spending levels in the corporate, education, and other non-affinity segments. Lead times are consistently shorter for small to mid-size meetings with more emphasis on regionality in the selection of a location or venue. With the increased price of airfare, car rental, and fuel, planners are looking to “hub” locations near their attendees to reduce both travel time and cost. Hybrid technology is especially relevant for small sessions or board meetings but we’re finding more attendees want to connect in-person and enjoy networking and the delightful food & beverage options offered at our IACC venues.
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