by Bill McBride on 1/14/2010 03:48:00 PM
Thursday, January 14, 2010
From HotelNewsNow.com: STR: Los Angeles-Long Beach leads weekly numbers
Overall, in year-over-year measurements, the industry’s occupancy decreased 3.9 percent to end the week at 40.5 percent. ADR dropped 6.8 percent to finish the week at US$91.85. RevPAR for the week fell 10.4 percent to finish at US$37.21.Click on graph for larger image in new window.
This graph shows the occupancy rate by week for 2008, 2009 and 2010 - plus an average (dashed line) for 2005 through 2007.
2010 is in Red - and it has just started (see far left).
Notes: the scale doesn't start at zero to better show the change.
Data Source: Smith Travel Research, Courtesy of HotelNewsNow.com
The above graph shows two key points:
The HotelNewsNow press release also has this graph on occupancy variance compared to 2009.
This shows that business travel (mid-week) was off more than leisure travel (weekends).
Business travel fell off a cliff in late 2008 with the financial crisis, and has been off significantly more than leisure travel. It is surprising, given the easy comparison to 2009, mid-week travel is still off more than weekend travel. This is something to watch carefully.
This is just one week, but it suggests businesses might still be tightening their travel budgets.
Posted by Bill McBride on 1/14/2010 03:48:00 PM