AHLA: Business Travel in Florida for 2022 Expected to Remain Down 11.1%
Statement from Carol Dover:
“Florida remains a top destination for both leisure and business travel, but today’s projections have Florida ending the year 11 percent down for business travel,” said Carol Dover, President and CEO of the Florida Restaurant and Lodging Association (FRLA). “We are incredibly proud of Florida’s comeback story, but this report reiterates that there is more work to be done to get us back to pre-pandemic figures. Business and corporate group travel is the leading source of revenue for hotels, which have endured years of catastrophic losses and now face inflation, supply chain issues, and staffing shortages. As businesses become more comfortable with a return to conferences, events, and business travel, we encourage them to come to the Sunshine State. Our hospitality industry is ready to welcome you!”
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Contact: Jennifer Myers, 202-289-3148; firstname.lastname@example.org
WASHINGTON (April 19, 2022) – According to a new report released today by the American Hotel & Lodging Association and Kalibri Labs, U.S. hotel business travel revenue is projected to be 23% below pre-pandemic levels in 2022, ending the year down more than $20 billion compared to 2019. This comes after hotels lost an estimated $108 billion in business travel revenue during 2020 and 2021 combined.
While leisure travel is expected to return to pre-pandemic levels this year, business travel—which includes corporate, group, government, and other commercial categories—is the hotel industry’s largest source of revenue and will take significantly longer to recover.
“While dwindling COVID-19 case counts and relaxed CDC guidelines are providing a sense of optimism for reigniting travel, this report underscores how tough it will be for many hotels and hotel employees to recover from years of lost revenue,” said Chip Rogers, president and CEO of AHLA. “The good news is that after two years of virtual work arrangements, Americans recognize the unmatched value of face-to-face meetings and say they are ready to start getting back on the road for business travel.”
Many urban markets, which rely heavily on business from events and group meetings, have been disproportionately impacted by the pandemic. The 10 markets projected to end 2022 with the largest percentage declines in hotel business travel revenue are:
|Hotel Business Travel Revenue By Market|
|MARKET||2019 Business Travel Revenue||2022 Projected Business Travel Revenue||$ Difference
|San Francisco, CA||$2,444,134,842||$762,413,756||$(1,681,721,086)||-68.8%|
|New York, NY||$4,537,220,914||$2,029,657,062||$(2,507,563,852)||-55.3%|
|Washington, DC Area||$2,753,490,519||$1,255,192,517||$(1,498,298,002)||-54.4%|
|San Jose, CA||$1,224,290,715||$589,896,117||$(634,394,598)||-51.8%|
|Source: Kalibri Labs|
The 10 states or districts projected to end 2022 with the largest percentage declines in hotel business travel revenue are:
|Hotel Business Travel Revenue By State|
|STATE||2019 Business Travel Revenue||2022 Projected Business Travel Revenue||$ Difference
|Source: Kalibri Labs|
The new report comes on the heels of a recent AHLA survey, which found 64% of employed Americans and 77% of business travelers agree that it is more important than ever to bring back business travel. The survey also found that 80% of employed Americans and 86% of business travelers say face-to-face interactions are important for maximizing company success.
The shifting sentiments around business travel are supported by a recent analysis conducted by the San Diego State University School of Hospitality & Tourism Management on behalf of AHLA that found in-person business travel and meetings have undeniable advantages over virtual options, and that businesses and organizations that resume business travel and meetings more quickly are likely to have a competitive edge over those that do not.
The American Hotel & Lodging Association (AHLA) is the sole national association representing all segments of the U.S. lodging industry. Headquartered in Washington, D.C., AHLA focuses on strategic advocacy, communications support and workforce development programs to move the industry forward. In the wake of the COVID-19 pandemic, hospitality was the first industry impacted and it will be among the last to recover. That is why AHLA is committed to promoting safe travel while also creating a standardized safety experience nationwide through the Safe Stay initiative. With an enhanced set of health and safety protocols designed to provide a safe and clean environment for all hotel guests and employees, hotels across America are ready to welcome back travelers when they are ready to travel. Learn more at www.ahla.com.