Hospitality Insight

Revenue Per Available Room: 2005 - 2013

According to Hotel Horizons September 2009 edition, PKF Hospitality Research is forecasting that nine consecutive quarters of declining demand for U.S. hotels will come to an end in the second quarter of 2010. The hospitality industry has been hit particularly hard by the current recession and the recovery of hotel demand will be an important point in the economic turnaround. PKF predicts that we will see this turnaround in the year ahead.

Hotel Horizons is available to students and faculty in the School of Hotel Administration.

According to recent data from Smith Travel Research (STR), the U.S. hotel industry posted declines in all three key performance measurements during July.

In comparison to the same time period for 2008, the industry’s occupancy rate fell 7.3 percent to end the month at 64.1 percent. Average daily rate (ADR) dropped 9.1 percent to finish the month at $97.18. Revenue per available room (REVPAR) for the month decreased 15.7 percent to finish at $62.34.

The Nestlé Library subscribes to several Smith Travel publications, including the Weekly Hotel Review and Comprehensive Pipeline Report.

An analysis of more than one million hotel reviews by the reservation web site hotel.info has concluded that guest satisfaction has risen.

The hotel.info Value for Money Index at mid-2009 reveals some surprising differences to the year-end 2008 rankings. Apparently the economic crisis has resulted in hotel customers giving better value-for-money ratings to hotels than before. The mean value of all customer ratings for bookings in the largest 20 cities around the world improved from 6.69 points at the end of 2008 to the current 7.11 points (out of 10 possible points).

In the U.S., the hotel.info Value for Money Index found that Minneapolis is the top-ranked city in terms of customer satisfaction, replacing Indianapolis, which had been ranked highest in the U.S. at the end of 2008.

Read the full hotel.info press release.