By all accounts, the Covid-19 pandemic has wreaked near-term havoc on the U.S. economy in general and on the hospitality, tourism and leisure industries in particular. While the Fed Chairman and hotel industry leaders concur that there will be positive GDP growth in the third and fourth quarters of 2020, none believe we will get back to where we were quickly.
The International Air Transport Association (IATA) released data for global air freight markets in April showing that demand dropped 27.7% compared to the same period in 2019 – the sharpest fall ever recorded. Still, there was insufficient capacity to meet demand as a result of the loss of belly cargo operations on passenger aircraft.
PwC US Hospitality Directions- May 2020
US Travel Agency Seven-Day Air Ticket Volume and Other Variances Ending May 31, 2020
U.S. hotel gross operating profit per available room fell 116.9% year over year in April, according to STR's monthly P&L data.
During the week of 17-23 May, Canadian hotel occupancy dropped 71.5% to 18.9%, ADR declined 39.3% to 101.99 Canadian dollars ($74.07) and RevPAR fell 82.7% to CA$19.28 ($14)
Data by SiteMinder today reveals that global hotel bookings in May were more than double Aprils YoY volume. The SiteMinder World Hotel Index shows bookings rose 137% over the four weeks from 29 April to 27 May, from 10.70% to 25.33% of 2019 levels.
STR data ending with 23 May showed another small rise from previous weeks in U.S. hotel performance. Year-over-year declines remained significant although not as severe as the levels recorded in April.
In this Seventh Edition, over one million existing and more than half a million pipeline rooms spread over 7,148 properties were captured. This publication features 55 operators. The analysis covers 33 countries and territories in Asia-Pacific and 1,133 markets with existing hotels as well as 832 markets with proposed hotels.
COVID-19 tightened its grip around U.S. states and cities where lockdowns were omnipresent, stay-at-home orders abounded and travel was at a near standstill. The result was a months worth of grim hotel data.