Overall outlook for the hospitality industry for 2018 is looking positive with steady growth, mid-scale hotel brands recognizing that the guests wants innovation and technology and pricey lifestyle hotel feel without the price tag. Furthermore, occupancy has been hovering around 66 percent. 1 According to Deloitte’s 2018 Travel and Hospitality Industry Outlook, over the past 20 years, international arrivals into the United States grew 72 percent—from 55 million to 76 million.2 In combination with other key growth drivers, this influx of spending drove the total US market, comprised of six segments including airlines, lodging, car rental, cruise, rail, and travel packaging to hit a record $353 billion in 2017.3 Strong five percent growth is forecasted for 2018, setting the industry on course to hit a record-breaking $370 billion by year’s end. 4
Growth: The hotel sector is projected to sustain a 5-6% growth throughout 2018, hitting $170 billion in gross bookings.5 Global travel industry gross bookings reached $1.6 trillion in 2017, making it one of the largest and fastest growing sectors in the world.8 Factoring in indirect economic contributions, travel and tourism now accounts for a staggering 10.2 percent of global GDP.9
New York City: 55% growth in hotel properties in New York City, since 2008 from 634 properties to 115,000 rooms.6
Midscale Hotel Experience: Midscale hotels are beginning to offer travelers come of the look, feel and experience of a pricey lifestyle hotel in an affordable package. Breathing new life into the midscale experience can include modern design aesthetics, better technology for connected travels, innovation around F&B, and re-imagined communal spaces. 7
- STR, Deloitte Subscription
- S. Department of Commerce, ITA, National Travel and Tourism Office from the Summary of International Travel to the U.S. (I-94) report, accessed October 22, 2017.
- Lorraine Sileo, Douglas Quinby, Maggie Rauch, Phocuswright’s Online Travel Overview: 16th Edition. 7.
- Sileo, Quinby, Rauch, Phocuswright’s Online Travel Overview: 16th Edition.
- The Real Deal: New York Real Estate News, July 10, 2017, https://therealdeal.com/2017/07/10/heres-why-nyc-hotel-room-rates-are-really-struggling-right-now/, accessed October 18, 2017.
- 2018 travel and hospitality industry outlook: Deloitte, https://www2.deloitte.com/content/dam/Deloitte/us/Documents/consumer-business/us-cb-2018-travel-hospitality-industry-outlook.pdf, accessed April 24, 2018.
- Douglas Quinby, Phocuswright Conference, Florida, November 9, 2017; Gross bookings include airline, hotel, car rental, rail, travel package, and cruise.
- Rochelle Turner, Evelyne Freiermuth, World Travel & Tourism Council: Global Economic Impact & Issues 2017; Indirect economic contributions include travel and tourism investment spending, government collective travel and tourism spending, and impact of purchases from travel suppliers. Induced contributions also include the spending of direct and indirect travel and tourism employees on food and beverage, recreation, clothing, housing, and household goods