6 Key Stats & Figures You Need to Know Before Your Next Hotel Job Interview
If you’re planning on becoming a hotel industry professional, you should be knowledgeable about more than just the brand or the aspect of hotellerie where you’d like to build a career. Understanding the intricacies of the business of hospitality can go a long way in the interview process, particularly for those looking for finance, revenue management or sales and marketing positions.
Demonstrating comprehensive knowledge of current market forces – and how they can potentially affect a hotel’s bottom line – is an indicator of why you’re the candidate that can make the greatest impact for the organization. Of course, you should read industry trade publications in order to keep on top of trends and new analysis. But equally important is a solid grasp of recent statistics that forecast where the industry is headed next and what that can spell for a given hotel. Here are six that could be relevant during your next job interview.
- CBRE Hotels’ Horizons Americas research forecasts a 10th consecutive year of growth with expectations for a strong performance for U.S. hotels in 2019. The December 2018 edition of CBRE’s Hotel Horizons anticipates U.S. hotel occupancy will increase to 66.2 percent, marking a fifth straight record for the industry despite net increase in supply. In other words, competition for hotels may be increasing from a supply perspective, but so is demand for U.S. hotels.
- Recession isn’t in the cards for 2019, if Deloitte’s 2019 U.S. Travel and Hospitality Outlook study is any indicator. The hotel industry has been growing for a number of years and Deloitte’s 2019 data anticipates that this trend will continue, even if the industry’s expansion is slowing. According to the report, Average Daily Rate (ADR) will grow at a rate of 2.4 percent while Revenue per Available Room (RevPAR) will increase at the same rate and occupancy will jump another 0.2 percent compared to 2018.
- PricewaterhouseCooopers or PwC projects lodging supply will increase at a rate close the long-term average, according to the group’s Hospitality Directions US January 2019. But tightening financial conditions and rises in labor and construction costs may hamper supply growth. In turn, RevPAR in 2019 will increase, albeit at a decelerating pace, ultimately achieved by ADR growth. Rising labor and construction costs may have an impact on supply growth and the paper also expresses concerns over negative near-term impact from the partial U.S. government shutdown, continued trade tensions and effects from tariff-rate implementation as well as political uncertainty amid partisanship and increasing interest rates.
- In late January, STR and Tourism Economics revised their 2019 U.S. hotel industry projections for the second time, putting demand growth at 1.9 percent, compared with the previously projected 2 percent growth expected for this year, with expectations for the slowdown to continue into 2020 when demand will fall to 1.7 percent. Likewise, supply is also expected to dip to 1.9 percent this year as occupancy rates remain flat at 66.2 percent before dropping in 2020 to 66.1 percent.
- The annual Business Travel Forecast, released by Carlson Wagonlit Travel and the Global Business Travel Association (GBTA) last summer, forecasts an increase in hotel rates as a result of greater demand for hotel rooms, driven by higher demand for air travel. According to the forecast, room rates are slated to jump by over five percent in Asia and Europe and 2.1 percent in North Americas. Conversely, hotel rates in Latin America are expected to drop 1.3 percent. The report also stated concerns for the global economy in 2019, including a rise in protectionist policies, potential trade wars, and uncertainty over Britain’s exit from the European Union.
- Survey data featured in the Hotel Monitor 2019 by American Express Global Business Consulting revealed that 84 to 94 percent of 2,000 travelers polled in seven countries, including the U.S. and the U.K., France, Germany, Australia, Singapore and India, cited booking hotels that were non-compliant with their companies’ travel policies in order to stay near clients or meetings, with 85 to 96 percent booked out-of-policy hotels in order “to stay in more convenient locations.” Quality, too, also causes 71 to 96 percent of travelers surveyed to book hotels other than those specified in company policy. –From a hotel marketing perspective, these numbers would indicate that all business travelers –including those who work for businesses that don’t have contracts in place with a property—represent viable bookings for a hotel.