Sep 17, 2021 - Economy & Business

Hard times for hotels

Data: American Hotel & Lodging Association and Kalibri Labs; Chart: Danielle Alberti/Axios

Stayed in a hotel lately? Neither have I.

Revenue in the hotel sector is projected to be down $59 billion this year compared with 2019, per a report from the American Hotel & Lodging Association (AHLA) and Kalibri Labs, a hotel data analytics company.

Why it matters: Business travel — which, for a shiny moment, looked like it might rebound, before COVID-19's Delta variant surge — is the bread and butter of the hotel business. Now it's "not expected to reach pre-pandemic levels until 2024," according to AHLA.

What they're saying: An estimated 67% of business travelers "are planning to take fewer trips, 52% are likely to cancel existing travel plans without rescheduling, and 60% are planning to postpone existing travel plans," according to a national survey by Morning Consult on behalf of AHLA.

Go deeper