Hotel Room And Occupancy Rates

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Our industry, the Global Hotels and Resorts, experienced strong growth over the five years to 2015. Over the five-year period, both consumers and businesses became more confident about their finances and spent freely on luxuries, including travel. This culminated in a substantial increase in travel rates and hotel room and occupancy rates, two indicators of a hotel 's performance. Travel spending has also picked up quickly, especially in emerging economies where tourism is on the rise. Global tourist arrivals are expected to increase an annualized 4.8% over the five years to 2015 to reach 1.2 billion. As a result of these positive trends, industry revenue is expected to increase an annualized 4.6% over the five years to 2015 to reach…show more content…
Over the five years to 2020, revenue is projected to increase at an annualized rate of 3.4% to $978.7 billion. In 2016 there will be some new trends emerging as hotels will have to compete with growing popularity of companies such as Airbnb. Millennials have shifted the focus from hotel loyalty to more novelty related experiences. The overarching experience that many of these hotels in the industry are shifting to is updated bars and lounges that spill into the lobby. Renovation will be on the upswing over the next few years as guests desire more technology, more stimulating social experiences, and better food and snack choices. Hotels will be looking to charge more fees and surcharges on amenities as occupancy rates increase. This goes without saying, demand drives prices, and the hotel industry will be in the driver’s seat in the coming years. Key external drivers which drive our industry are: 1) global tourist arrivals (Trends in international and domestic visitor flights and their length of stay influence demand for accommodations. A rise in international and domestic trips positively affects demand for hotels and resorts. The number of global tourist arrivals is expected to increase in 2015), 2) global consumer sentiment index (Trends in international and domestic visitor flights and their length of stay influence demand for accommodations. A rise in international and domestic trips positively affects demand for hotels and resorts. The number of global tourist

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