This week in Hospitality & Tourism #43 2022

October 28, 2022

#inflation
#google
#news
#str

Deloitte: Holiday Season to Feature Fewer Shopping Bags and Suitcases as Consumers Navigate Inflation

  • Inflation will likely curb holiday shopping habits: Holiday spending is flat year-over-year with an average $1,455 per household, but consumers plan to purchase fewer gifts (nine gifts versus 16 gifts in 2021) for family and friends.
  • They will likely pull back on non-gift purchases (down 12% year-over-year), and shift spending to experiences (up 7% year-over-year).
  • Low-income earners plan to spend 25% more than last year, while high-income earners plan to cut back 7%.
  • Travel demand slows, with less than one-third (31%) of Americans planning to travel between Thanksgiving and mid-January, down from 42% in 2021.
Deloitte Average Expected Holiday Spend

The Implications of Google's Latest Algorithm for Hospitality

Google’s latest algorithm (Broad Core) is now out. The search giant says the latest updates will highlight more valuable results that are created for humans. In other words, these updates have been made with us in mind.

Broad Core seeks to highlight more valuable results within its search results by penalizing companies with outdated websites or large amounts of duplicate content.

STR: U.S. hotel results for week ending 22 October

U.S. hotel performance decreased slightly from the previous week but showed improved comparisons with 2019, according to STR‘s latest data through 22 October.

  • Among the Top 25 Markets, Tampa reported the largest increases over 2019 in occupancy (+7.4% to 75.9%) and RevPAR (+39.2% to US$117.28). Tampa has been one of the markets in Florida that have seen a performance lift associated with post-Hurricane Ian demand.
  • Miami posted the highest ADR increase over 2019 (+32.8% to US$221.59).
  • San Francisco was the only market to post an ADR decline (-8.5% to US$234.06).
  • The steepest RevPAR declines were in San Francisco (-22.0% to US$175.30) and Minneapolis (-13.7% to US$79.33).

16-22 October 2022 (percentage change from comparable week in 2019):

  • Occupancy: 69.9% (-0.5%)
  • Average daily rate (ADR): US$157.43 (+16.7%)
  • Revenue per available room (RevPAR): US$110.11 (+16.1%)
STR Occupancy Data