by Bill McBride on 12/31/2009 12:28:00 PM
Thursday, December 31, 2009
In terms of the occupancy rate, 2009 was the worst year since the Great Depression (close to 55%). And last week was no exception with Smith Travel Research reporting the occupancy rate fell to 33.8 percent - the lowest weekly occupancy rate on record.
From HotelNewsNow.com: STR reports US performance for week ending 26 December
In year-over-year measurements, the industry’s occupancy fell 5.4 percent to end the week at 33.8 percent. Average daily rate dropped 8.0 percent to finish the week at US$85.78. Revenue per available room for the week decreased 13.0 percent to finish at US$29.02.Click on graph for larger image in new window.
This graph shows the occupancy rate by week for each of the last four years (2006 through 2009 labeled by start of month).
Note: Some of the holidays don't line up - especially at the end of the year.
Data Source: Smith Travel Research, Courtesy of HotelNewsNow.com (Note: They have a free daily email too for hotel news)
The end of the year can be a little confusing because of the holidays, and the next key weeks will be mid-to-late January to see if business travel is picking up in 2010.