More travelers means more hotel occupancy. But it’ll be years before room revenues reach pre-pandemic levels, according to one trade association.
In the D.C. region, hotel room revenue took a hit of nearly $3 billion over the past two years.
And almost 9,000 hotel and travel jobs were lost in 2021 alone, pushing a total of 52% out of the industry’s workforce in D.C., according to the American Hotel and Lodging Association.
The D.C. region also experienced a loss of $400 million in state and local tax revenue, according to the association.
Nationwide, only 58.3% of meetings and events are likely to return this year, the association’s report showed. Remote work has made for more flexible travel options, but business travel is down and this year’s job loss rate is projected to be around 7% across the industry when compared to 2019.
While there have been many challenges, the association says its recent report shows how resilient the industry is and recovery is expected to be driven by leisure travelers. Room revenues are also expected to increase 19% in 2022 compared to last year, fairly close to the levels we saw just before the pandemic.
The association says a full recovery is years away but the trend is positive and more sustainable hotel initiatives and evolving loyalty programs will also be an important contribution.
