Hotel CEOs Are Bullish About a Strong 2023
Skift Take
Key Points
- Hotel executives are optimistic about sustained growth in 2023 despite economic uncertainties.
- Short-term rental providers are seeing a rise in discounted last-minute bookings.
- The U.S. struggles to communicate its sustainability efforts to European travelers, impacting tourism recovery.
Summary
Hotel executives are optimistic about continued growth in 2023, driven by changing consumer behaviors and high travel demand. Meanwhile, short-term rental providers are capitalizing on a trend of discounted last-minute bookings. However, the U.S. faces a challenge in effectively communicating its sustainability efforts to European tourists, which may be hindering the recovery of European visitation post-pandemic.
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Episode Notes
Hotel executives are riding high after a largely stellar earnings season that reflected surging travel demand. And they’re bullish on the good times continuing in 2023, reports Senior Hospitality Editor Sean O’Neill in this week’s Early Check-in column.
O’Neill writes many executives believe a possible recession won’t hurt the hotel industry partly because of changing consumer behavior. Hilton CEO Christopher Nassetta said more
consumers are shifting their spending to experiences. MGM Resorts President and CEO Bill Hornbuckle also expressed optimism about a strong 2023. He said the company is confident about setting revenue records this March.
Next, short-term rental providers are seeing a surge in discounted last-minute bookings. That’s a trend more companies are looking to cash in on, writes Short-term Rentals Reporter Srividya Kalyanaraman.
Online travel marketplace Getawaygogo is one company optimistic that the trend of last-minute bookings will endure. Users can only book stays only 14 days in advance, which founder Bradley den Dulk said enables the company to offer deep discounts. Kalyanarman cites a study that revealed a 17 percent reduction in average daily rates for last minute reservations in the U.S. Meanwhile, William Parry, CEO of London-based property management company Altido, said it’s not unusual to see discounts of up to 60 percent on last-minute bookings.
However, some analysts believe major industry giants like Airbnb and VRBO aren’t concerned about the rise of platforms like Getawaygogo. Kalyanaraman notes travelers considering Airbnb aren’t generally looking for discounts.
Finally, U.S. tourism authorities are adamant that the country has made progress becoming a greener destination. However, they’ve done a poor job relaying that message to European travelers seeking sustainable travel options, writes Global Tourism Reporter Dawit Habtemariam.
Peter van Berkel, chair of the International Inbound Travel Association, admitted the U.S. has a sustainability perception problem with European tourists. He added that some potential visitors wrongly believe the U.S. is very little compared to Europe regarding sustainability. Habtemariam writes that perception could be a reason why European visitation to the U.S. has been slow to recover from the pandemic. A recent survey found roughly 70 percent of travelers are actively looking to travel more sustainably.
Van Berkel called on the U.S. travel industry to raise awareness of its sustainability success stories. He cited the U.S. National Park Service installing charging stations for electric vehicles as one example.
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