NEW YORK CITY — Top hotel executives, who recently spoke at New York University's 29th Annual International Hospitality Industry Investment Conference, said they remain bullish that the industry will retain its strength for the next few years and beyond.
Andrew Cosslett, InterContinental Hotels Group CEO, told a few thousand hospitality investors and analysts that he expects the industry to be strong at least through the next decade, as new factors in travel have disrupted the usual up and down motion of the industry's cycle.
"We didn't have the Internet, we didn't have 100 million Chinese people about to arrive on the world travel scene, and we didn't have people with 10 years more life expectancy and more money," said Cosslett.
HVS International chair Lalia Rach said improvement in the overall U.S. economy would provide an additional boost. Coslett also said that despite growth markets in India and China, the U.S. market would remain “the dynamo for growth for the next 20 years.”
The latest Ernst & Young lodging report said the surge in business travel in the last 12 months can be attributed to lower domestic airfares and corporate travel departments lowering costs through the advance purchase of airline tickets.
"This, in turn, has led to strong demand for hotel rooms, pushing up prices, in traditional corporate destinations such as Manhattan, Chicago, San Francisco, Los Angeles, and Boston,” said Michael Fishbin, national director of the Ernst & Young U.S. Hospitality & Leisure practice. For the remainder of 2007, Ernst & Young expects moderate supply growth, stable occupancy rates, and overall average daily rate increases of 6%.
Source: Business Travel News, Procurement Travel