Move Over Revenue Models: Hotel Recoveries Will Also Need to Factor In Psychology, Sociology
Photo Credit: Some hotel analysts are beginning to predict industry recovery timelines, but others caution too many uncertainties still await the market. Needpix / Manne1409
Skift Take
Hoteliers should spend less time worrying about recovery timelines and focus more on boosting occupancy rates above break-even operational cost levels as quickly as possible. That may mean considering some non-traditional factors.
Analysts are beginning to predict the hotel industry’s recovery from the coronavirus downturn in travel, but some caution there are still too many unknown variables awaiting properties when they reopen.
Marriott CEO Arne Sorenson Monday said most of the world’s hotel markets had hit their bottom performance levels and were beginning to show signs of an initial recovery. But full recovery could be a long way off. It will likely take three years for the hotel industry to return to 2019 profit levels, CBRE Senior Economic Advisor Spencer Levy said Tuesday on the firm’s hotel sector outlook webinar. But other analysts argue it is still too early in the coronavirus crisis to lock into any set recovery forecast.
“It’s much more about understanding psychology, sociology, and economics than understanding hospitality and trend
