Hotel & Motel Management - November 19, 2007 - (Page 26)

26 News H&MM November 19, 2007 | HotelMotel.com Travel Continued from page 1 nue per available room for hotels in the U.S. should both increase 5.2 percent in 2008, according to data collected by Smith Travel Research. Although this is a rate increase, the percentage of change in both categories is not as high as in previous years. Occupancy is not forecasted to rise in 2008, but that’s because oc- cupancy is softer due to increased supply, not declining growth, according to Suzanne Cook, senior v.p. of research for the TIA. The increase in supply is evidenced by an anticipated 2-percent growth in 2008, up from 0.3 percent two years before. Demand also will be up in 2008, matching the 2-percent rise in supply. TIA expects business travel to stay relatively ﬂat compared to volume since 2000, increasing 1 percent, compared to leisure travel, Hall WINGATE Witzel CARLSON which is up 19.3 percent. Bill Hall, brand senior v.p. for Wingate by Wyndham, said the brand has not seen sharp increases in business travel volume, but growth is not ﬂat. The midscale brand, which has 150 hotels comprising 14,000 rooms, has a 70percent business traveler clientele. Carlson Hotels Worldwide, which also has a 70-percent business base, has ideas about 2008. “I’m not sure I agree with TIA that business travel is ﬂat,” president and c.e.o. Jay Witzel said. “I think growth is smaller, but we seem to be doing ﬁne. A slight Domestic business travel volume (Percentage of change) 2005 2006 2007 2008 -0.6% -0.2% -1.7% +2.0% Source: DK Shifﬂet & Associates, Travel Industry Association, Global Insight increase is not ﬂat.” But for its 960-hotel, 146,000guestroom portfolio, Witzel said other predictions by industry experts for occupancy and rate seem spot-on for Carlson. Stephen Schafer, v.p. strategic planning and investor relations at FelCor Lodging Trust, agreed. “As long as supply growth stays at moderate levels, you’ll continue to see pretty strong rate growth and RevPAR growth,” he said FelCor owns and manages 83 hotels comprising about 24,000 guestrooms. An estimated 65 percent of its business comes from corporate guests. Economic impact of green Some hoteliers worry that rate growth could be compromised by eco consciousness. Peter Yesawich, president and c.e.o. of Ypartnership, said in the TIA conference that nearly 80 percent of travelers consider themselves eco-conscious, yet only 13 percent would be willing to pay a higher rate to patronize eco-friendly businesses. Hall is conﬁdent that willingness to pay will turn around in the future because of the eco-friendly attitudes of Generation X, but the economic impact is yet to be seen. Carlson intends to import to the U.S. its eco-conscious Responsible Business program already in place in Europe, but Witzel remains skeptical. “Green may not be as economically sane as everybody thinks it is,” he said. “If somebody can prove to me that reducing my carbon footprint is going to be beneﬁcial, then I’m going to do it, but for a country that has three cars for every family, it’s going to be hard to get that footprint removed.” ehanna@questex.com CIRCLE NO. 127 http://HotelMotel.com http://www.maestropms.com/HMM http://www.maestropms.com/HMM

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Hotel & Motel Management - November 19, 2007 Contents Torrid Hotel Sales Pace Persists Boykin Takes Steps to Regain Foothold Best Western Sets 10-year Plan Perspective At Your Risk HotelWorld Update Sales Clinic Events Trends & Stats Charting H&MM's Top Lodging Design Firms Fitness Equipment Supplier News PMS Software Provides One-Click Solutions High-Quality Linens Require Higher-Quality Cleaning Despite Slow Market, Condo Hotels Thrive Ad/Editorial Index Marketplace Classifieds Checking Out

Hotel & Motel Management - November 19, 2007

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