Skift Take

A prediction for increased development and high demand signifies that the industry will build up on its recent growth, although several major cities are at risk of bloating the supply side, leaving hotels to fight for high occupancy.

With 2012 almost behind us, 2013 is coming into focus. Here are some larger trends that will affect the hotel industry and impact revenue per available room.

More new supply

The number of rooms in the pipeline is steadily increasing, and we expect to see new hotel openings throughout 2013, mostly in the limited- and select-service categories. A few markets are expected to add multiple new hotels, and their occupancies likely will suffer—New York probably being an exception again.

More demand

Even though uncertainty from the election and the fiscal cliff surround the American economy, room demand broke records. We expect the rate of growth will slow in 2013, but hoteliers once again will sell more room nights than ever before. STR expects U.S. demand to grow 1.2% in 2013.

Fewer resort fees

The Federal Trade Commission’s warning letter was clear: Disclose full prices including all fees, or we will make you. It will be interesting to see if hoteliers will abandon the charges or, more likely in my opinion, increase their room rates.


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Tags: Travel Trends

Photo credit: The sign on the famous Hotel California in California. Kevin Dooley /

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