Marketing Review — Fall 2008 - (Page 53)

Looking at the aggregate total for all 25 U.S. markets, the number of weekday rooms sold increased, while the number of rooms sold in weekend periods decreased. Thus, business (weekday) demand remained strong in most markets, while leisure (weekend) demand weakened in all 25 markets for the period 2006 – 2007. R TABLE 2. Trends in Percent Market Share of Total Hotel Rooms Sold, by Hotel Scale Orlando, FL 2006 2007 2007* Selected U.S. Cities, 2006,2008* *to July 2008, Source: Smith Travel Research Percent of Total Market Share: Weekday vs. Weekends Percent of total market share for weekday vs. weekend rooms sold is shown in Table 1 for the top 25 U.S. destination markets for the 19-month period from January 2007 to July 2008. Weekday percent market share of total rooms sold increased in 23 out of the 25 top U.S. markets for the period 2007 – July 2008. The two markets showing small decreases in percent market share of weekday rooms sold were St. Louis, Missouri, and Philadelphia, Pennsylvania. Weekend percent market share of total rooms sold decreased in 23 out of the 25 top U.S. markets, with St. Louis and Philadelphia showing small increases in percent weekend market share. Looking at the aggregate of the top 25 U.S. markets, the percent market share of weekday rooms sold increased, while the percent market share of weekend rooms sold has decreases during 2008. Thus, the market share of business (weekday) demand remains strong in most markets, while the leisure (weekend) demand has weakened during this period. See Table 1 on page 52. New York, NY 2006 2007 2007* Los AngelesLong Beach, CA 2006 2007 2007* Trends in Market Share by Hotel Sector, 2006 – July 2008 How has hotel room demand changed by hotel sector during the 31-month period from 2006 – July 2008 in periods of higher transportation costs and a slowing U.S. economy? Table 2 shows a sample of the percent market share of total rooms sold by six hotel sectors in the top 17 U.S. travel destination markets.8 Only the top 17 U.S. travel destination markets were examined because complete data by hotel sector was available for comparison in 17 out of the top 25 markets. Chicago, IL 2006 2007 2007* Hotel Sector: Percent Market Share of Total Rooms Sold The six hotel sectors in Table 2 were identified by Smith Travel Research according to the following ADR criteria: Luxury . . . . . . . . . . . . . . . . . . . (ADR > $210) Upper Upscale . . . . . . . . (ADR $125 - $210) Upscale . . . . . . . . . . . . . . . . (ADR $95 - $25) Midscale with F&B . . . . . . . . . . (ADR $65) Economy / Budget . . . . . . . . . . (ADR < $65) Atlanta, GA 2006 2007 2007* In Table 2, shifts in hotel demand for 2006, 2007 and to July 2008 can be examined by percent market share of total rooms sold by hotel sector. For example, the Chicago market in Table 2 shows the percent market share to total rooms sold has increased from 2006 – July 2008 for three sectors: 1) Luxury, 2) Upper Upscale, and 3) the Upscale sector. Also, Chicago has FALL 2008 • HSMAI MARKETING REVIEW the full report of all 17 8 Forto www.utk.edu/tourismtop U.S. destinations, go 53 http://www.utk.edu/tourism

Table of Contents Feed for the Digital Edition of Marketing Review — Fall 2008

Marketing Review – Fall 2008 Contents The Online Marketer Success Stories Forecasting Trends Ian Schrager: The Revolutionary Man Leaving No Stone Unturned: The Quest for Ancillary Revenue Gaga Gadgets for Execs on the Go: Functional New Portable Technology to Make Life and Work on the Road More Hospitable Effectively Weathering the Ups and Downs of the Economic Cycle Experiments in Podcasting Higher Transportation Costs and a Slowing Economy Shift Hotel Room Demand

Marketing Review — Fall 2008

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