This is a projected -19.1% difference in total business travel revenue compared to 2019.
RALEIGH, NC (October 19, 2022) – The hotel industry in North Carolina is projected to end 2022 down by 19.1%, or $92.4 million, in business travel revenue compared to 2019, according to a new report released today by the American Hotel & Lodging Association (AHLA) and Kalibri Labs.
However, leisure travel is up in 42 of the top 50 U.S. markets. Compared to 2019, leisure travel in North Carolina’s two largest markets, Charlotte and Raleigh, is up by $152,885,643 (+36.6%). Click here to view the data for the top 50 markets.
|2019 Business Travel Revenue||2022 Projected Business Travel Revenue||Difference v. 2019||2019 Leisure Travel Revenue||2022 Projected Leisure Travel Revenue||Difference v. 2019|
|Charlotte (Rank=27)||$583,496,316||$551,816,722||($31,679,594) -5.4%||$432,816,960||$557,622,244||$124,805,285|
|Raleigh (Rank=33)||$444,966,431||$384,174,247||($60,792,184) -13.7%||$361,010,461||$389,090,819||$28,080,358 7.8%|
|Total||$1,028,462,747||$935,990,969||($92,471,778) -19.1%||$793,827,421||$946,713,063||$152,885,643 36.6%|
The projections are not adjusted for inflation, and real hotel revenue recovery will likely take several more years.
Business travel is the hotel industry’s largest source of revenue and has been slow to return since the onset of the pandemic. Business travel includes corporate, group, government, and other commercial categories. Business travel revenue is not expected to reach pre-pandemic levels until 2024.
The uptick in revenue is leading to historic career opportunities for hotel employees, with more than 115,000 hotel jobs currently open across the nation. Hotels are offering potential hires a host of incentives to fill vacancies—81% have increased wages, 64% are offering greater flexibility with hours, and 35% have expanded benefits, according to a September 2022 AHLA member survey.
“The hotel industry continues its march toward recovery, but we still have a way to go before we fully get there,” said AHLA President & CEO Chip Rogers. “That’s why AHLA remains focused on working with members, lawmakers and stakeholders in markets that are rebounding more slowly to ensure the full return of meetings, conferences, and group travel in addition to leisure and business travel.”
The North Carolina Restaurant and Lodging Association continues to work towards employment recovery within the state’s hospitality workforce, through the $5 million allocated to us by the state legislature from the state’s portion of the American Rescue Plan.
“These numbers show that the North Carolina hospitality industry continues to be disproportionately affected by the COVID-19 pandemic,” said Lynn Minges, President and CEO of the NC Restaurant & Lodging Association. “Despite the ongoing challenges, NCRLA is working with our state and federal partners to help businesses, employees and communities survive this pandemic.”
The North Carolina Restaurant & Lodging Association (NCRLA) serves to advance and protect the interests of more than 20,000 businesses that employ 11 percent of the state’s workforce and generate more than $27.3 billion in sales annually. Learn more at www.ncrla.org
The American Hotel & Lodging Association (AHLA) is the sole national association representing all segments of the U.S. lodging industry. Headquartered in Washington, D.C., AHLA focuses on strategic advocacy, communications support and workforce development programs to move the industry forward. In the wake of the COVID-19 pandemic, the hospitality industry was the first industry impacted and it will be among the last to recover. That is why AHLA is committed to promoting safe travel while also creating a standardized safety experience nationwide through the Safe Stay initiative. With an enhanced set of health and safety protocols designed to provide a safe and clean environment for all hotel guests and employees, hotels across America are ready to welcome back travelers when they are ready to travel. Learn more at www.ahla.com
About Kalibri Labs
Kalibri Labs evaluates and predicts hotel revenue performance with its next-generation tech platform to support hotel owners, operators, brands and real estate investors. Kalibri Labs enables users to improve underwriting accuracy and to benchmark, execute plans and assess results for a hotel’s profit contribution targets. The Kalibri Labs database is comprised of guest transactions, including cost of sales and source of business information, from almost 35,000 hotels dating back more than 7 years and updated weekly to give an expansive view of the U.S. hotel industry.
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