Labor-related issues and energy/utility costs are among the top challenges on the mind of global hotel and travel industry professionals, while leisure demand and increased guest spending are seen as the biggest strengths, according to a new survey from STR.
The Hospitality Industry Sentiment survey is STR’s first longitudinal study of hotel and travel industry professionals, with initial findings captured between 29 November and 11 December 2022 from 200 respondents across the globe.
“While respondents cited similar challenges around the globe, professionals in North America indicated that labor supply and cost challenges were number one on their list,” said Brannan Doyle, research analyst at STR. “Respondents outside of North America, however, were more likely to note that energy and utility costs were a major concern for their business. The survey group also expressed trepidation for the overall economy, including recessionary headwinds, interest rates, inflation and depreciation of the U.S. dollar as well as limited flight availability and higher airfares.”
While challenges were a big factor, respondents also weighed in on strengths, nothing that surging leisure demand and increased guest spending have been a boon to their business.
“Over a third of respondents noted ‘bleisure’ travel as a positive dynamic to their business,” Doyle said. “Other notable boosts included the chance to perform property renovations, lifts in hotel rooms rates and the possibility of travel price inflation easing in 2023. In addition to these challenges and strengths, a third of respondents expect to meet or surpass 2019 hotel occupancy levels in Q1, while 46% anticipate achieving that goal by the end of the year.”
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STR provides premium data benchmarking, analytics and marketplace insights for global hospitality sectors. Founded in 1985, STR maintains a presence in 15 countries with a North American headquarters in Hendersonville, Tennessee, an international headquarters in London, and an Asia Pacific headquarters in Singapore. STR was acquired in October 2019 by CoStar Group, Inc. (NASDAQ: CSGP), a leading provider of online real estate marketplaces, information and analytics in the commercial and residential property markets. For more information, please visit str.com and costargroup.com.