Table of Contents
- Scope and Themes
- What you need to know
- Definition
- Data sources
- Sales data
- Consumer survey data
- Abbreviations and terms
- Abbreviations
- Terms
- Executive Summary
- Key points
- Hotels struggle to perform in underperforming market
- Many drivers of lodging demand have turned sour
- Market dominated by six hotel groups
- Innovation and advertising
- Consumer hotel travel trends
- Revenue growth minimal once inflation is factored in
- Hotels compete with free and paid accommodations in an environment where
market drivers are turning sour
- Top hotel groups expanding and innovating
- Leading 22 hotels spent $479 million on media
- Highlights from the consumer research
- Market Size and Forecast
- Key points
- Revenue growth, after adjusting for inflation, is stagnant
- U.S. economic performance will lower occupancy rates and hinder growth in
ADR
- Luxury brands outperform the rest of the market in RevPAR
- Hotel and accommodations sales and forecast through 2013
- Figure 5: U.S. hotels and accommodations revenue and forecast, at
current prices, 2003-13
- Figure 6: U.S. hotels and accommodations revenue and forecast, at
inflation-adjusted prices, 2003-13
- Competitive Context
- Many choose free or inexpensive overnight accommodations
- Figure 7: Accommodations on last domestic trip for vacation or personal
reasons, February 2007-March 2008
- A plethora of new brands
- Figure 8: New hotel brands, March 2006-April 2008
- Previous experience matters
- Figure 9: Importance of having stayed at a hotel before, by age,
June-July 2008
- Room cost is an important factor in the booking decision
- Figure 10: Importance of price in booking accommodations, by age,
June-July 2008
- Segment Performance
- Key points
- Hotel/motels account for two thirds of category sales
- Revenue from ancillary hotel services (food, beverage, gaming) should slow
as occupancy levels decline
- Consumers love to gamble
- Hotel and accommodation revenue segmentation, by type of hotel, revenue
stream
- Figure 11: Hotel and accommodation revenue, segmented by type of
accommodation, 2006 and 2008
- Figure 12: Hotel and accommodation revenue, segmented by revenue stream,
2006 and 2008
- Segment Performance--Hotels and Motels
- Key points
- After steady revenue growth since 2004, times will be tougher ahead
- Figure 13: Revenue from hotels & motels, at current prices, 2003-13
- Room rentals account for the majority of segment revenue
- Figure 14: Hotels & motels revenue, segmented by revenue stream, 2006
and 2008
- Segment Performance--Casino Hotels
- Key points
- The casino hotel is a means to an end
- Figure 15: Casino hotel revenue, segmented by revenue stream, 2006 and
2008
- Casino hotels looking to attract non-gambling guests
- Sales/forecast at casino hotels
- Figure 16: Revenue from casino hotels, at current prices, 2003-13
- Market Drivers
- As goes the economy, so goes the hotel industry
- GDP
- Figure 17: U.S. GDP 2000-07
- Figure 18: U.S. GDP forecast--2007-18
- Fuel prices
- Figure 19: U.S. Gasoline Prices (all grades), at inflation-adjusted
prices, 2003-08
- Disposable personal income
- Figure 20: Per capita disposable personal income, at current and chained
2000 dollars, 2000-08
- Cutbacks in airline capacity decrease hotel demand
- Figure 21: Large airports with biggest capacity declines (overall seat
reduction) November 2008 vs. November 2007
- Travel costs rising
- Figure 22: Travel price index* and consumer price index*, 2002-11
- U.S. underperforming as an international travel destination
- Figure 23: International and overseas* visitors to U.S., 2000-11
- Domestic travel is stagnant
- Figure 24: U.S. resident travel volume 1997-2011
- Leading Companies
- Key points
- Top 10 hotel groups worldwide
- Hotel expansion continued globally in 2008 but at a slower rate than in
2007
- A 20% increase in supply planned by the top global hotel groups by 2015
- The 10 largest hotel groups worldwide
- Figure 25: World Ranking--10 largest hotel groups by number of hotels,
2007 & 2008
- Figure 26: World Ranking--10 largest hotel groups by number of rooms,
2007 & 2008
- U.S. brand share
- Leading U.S. hotel groups added 66,000+ rooms, yet leading brands
contracted
- Figure 27: Number of rooms and brand share for top 50 hotels in the
U.S., 2006 & 2007
- Brand Qualities
- Starwood Hotels & Resorts--Westin Brand
- Holiday Inn
- Hampton Inn
- Best Western
- Innovation and Innovators
- Creating new brands and boutique hotels to meet any need
- NYLO Hotels
- Edition
- Element
- In-room technology
- Hilton' s ' Sight+Sound' rooms
- Hyatt' s music offering
- Rodeway targets the value-conscious senior traveler
- Partnering to differentiate a brand or hotel experience
- Advertising and Promotion
- Key points
- Overview
- Figure 28: Media expenditures for leading hotel brands, 2006-07
- Advertising themes
- Theme--Features
- Figure 29: Television Spot, Holiday Inn "MBA Lecture--Guest Room
Simulator," June 2008
- Figure 30: Television Spot, Residence Inn "Women With Curtain And
Apple," November 2007
- Figure 31: Television Spot, Econo Lodge "Princess & Frog," July 2008
- Figure 32: Television Spot, Days Inn "New Look & More Value/Happy
Guests," May 2008
- Theme--Locations
- Figure 33: Television Spot, Crowne Plaza "The meeting of people with
advice for phil," July 2008
- Figure 34: Television Spot, Super 8 "The number you can always count
on," June 2008
- Theme--The perfect getaway
- Figure 35: Television Spot, Sandals "The time of our life," June 2008
- Figure 36: Television Spot, Wyndham "2 Out Of 5 Americans/4th Night Free
Offer," July 2008
- Figure 37: Television Spot, Hampton Hotels "With a Little Help from my
friends, 2," May 2008
- Theme--Promotions/Loyalty programs
- Figure 38: Television Spot, Comfort Inn "Country Singer Lists Holiday
Destinations," May 2008
- Figure 39: Television Spot, Hilton Hotels "No Blackout Dates For Hilton
HHonors Members," July 2008
- Figure 40: Television Spot, Sheraton "Rival Fans Getting Along," January
2008
- Usage
- Key points
- The share of adults who stay in hotels has rebounded since 2001/2002
- Figure 41: Incidence of hotel stays, by age, October 2000-March 2008
- Most hotel stays are for leisure purposes
- Figure 42: Incidence of hotel stays for business or leisure travel, by
age, June-July 2008
- Figure 43: Incidence of hotel stays for business or leisure travel, by
household income, June-July 2008
- Figure 44: Incidence of hotel stays for business or leisure travel, by
race/Hispanic origin, June-July 2008
- Adults spend 5+ nights in domestic hotels; $100K+ households, 6.3 nights
- Figure 45: Mean nights spent in hotels, by leisure or business, by key
demographics, February 2007-March 2008
- Adults who have not stayed in a hotel either do not travel or choose to
stay with friends/family
- Figure 46: Reasons for not staying in a hotel/motel, by age, June-July
2008
- Figure 47: Reasons for not staying in a hotel/motel, by household
income, June-July 2008
- Figure 48: Reasons for not staying in a hotel/motel, by race/Hispanic
origin, June-July 2008
- Accommodation Options and Preferences
- Key points
- Among overnight travelers, paid accommodations and staying with friends
and family are the predominant accommodation choices
- Figure 49: Accommodations on last domestic trip, February 2007-March 2008
- Budget hotels most popular paid accommodation, but price is not the
primary driver
- Figure 50: Paid accommodation preferences, by household income,
June-July 2008
- Brand Preferences
- Leading hotel brand preferences span economy to ' upper upscale' chains
- Figure 51: Hotel brands stayed at for any domestic travel (business or
leisure), February 2007-March 2008
- In the fragmented leisure market, midscale and economy hotels more often
selected
- Figure 52: Hotel brands stayed at for domestic leisure travel, February
2007-March 2008
- The leading business hotels are ' upper upscale' brands
- Figure 53: Hotel brands stayed at for domestic business travel, February
2007-March 2008
- Enrollment in Frequent Guest Programs
- Only one in five adults who stay in hotels are loyalty program members
- Figure 54: Enrollment in frequent guest programs, by key demographics,
February 2007-March 2008
- Methods for Finding/Researching Hotels
- A previous stay influences the future choice of hotel
- Online sites are a significant source of information
- Information sources used
- Figure 55: Information sources used to find a hotel, by age, June-July
2008
- Race/Hispanic origin and hotel research sources
- Figure 56: Information sources used to find a hotel, by race/Hispanic
origin, June-July 2008
- Booking Methods
- Leisure travelers book rooms directly with the hotel
- Figure 57: Booking methods, by age, June-July 2008
- Desired Hotel Amenities
- Free parking, flexible check-in/out, and nearby restaurants are the most
important amenities for leisure guests
- Figure 58: Importance of hotel amenities, by household income, June-July
2008
- Asian, Hispanic and black respondents consider more amenities important to
their hotel decision than whites
- Figure 59: Importance of hotel amenities, by race/Hispanic origin,
June-July 2008
- Perceptions About Hotels
- Most adults view hotels as a base from which to explore nearby attractions
- Price is a "main concern" of eight in 10 adults when booking accommodations
- Hotels are an important component of the "holiday experience" yet, for
many, they just represent a place to sleep
- Hotel perceptions by age, income and race/Hispanic origin
- Figure 60: Perceptions about hotels, by age, June-July 2008
- Figure 61: Perceptions about hotels, by household income, June-July 2008
- Figure 62: Perceptions about hotels, by race/Hispanic origin, June-July
2008
- Hotel Usage by Non-guests
- Two thirds of adults do not visit a hotel to take advantage of its
offerings when not visiting as a guest
- Figure 63: Hotel usage by non-guests, by age, June-July 2008
- Figure 64: Hotel usage by non-guests, by household income, June-July 2008
- Appendix: Other Useful Consumer Tables
- Types of hotels used by leisure travelers
- Figure 80: Types of hotels used by leisure travelers, by age, June-July
2008
- Figure 81: Types of hotels used by leisure travelers, by race/Hispanic
origin, June-July 2008
- For foreign leisure travel, hotels face competition from non-hotel options
- Figure 82: Accommodations on last foreign leisure trip, by key
demographics, February 2007-March 2008
- Foreign travel--leisure v. business
- Figure 83: Accommodations on last foreign trip, by business or leisure,
February 2007-March 2008
- Hotel research and booking
- Figure 84: Information sources used to find a hotel, by household
income, June-July 2008
- Figure 85: Booking methods, by household income, June-July 2008
- Figure 86: Booking methods, by race/Hispanic origin, June-July 2008
- Unimportant hotel amenities, by age, income and race/Hispanic origin
- Figure 87: Less important hotel amenities, by age, June-July 2008
- Figure 88: Less important hotel amenities, by household income,
June-July 2008
- Figure 89: Less important hotel amenities, by race/Hispanic origin,
June-July 2008
- Hotel usage by non-guests
- Figure 90: Hotel amenity usage by non-guests, by race/Hispanic origin,
June-July 2008
- Appendix: Trade Associations
|
Related Report
|
View Cart
