U.S. Hotel Occupancy, Prices and Fees Increasing
The latest report from STR, an industry company which tracks the lodging business, shows that business travelers are continuing to fuel growth in the financial performance of U.S. hotels €" and to allow those hotels to charge more for their rooms,
For the study, STR analyzed U.S. hotel results for mid-August. The report shows that overall occupancy hit 70.4 percent, an increase of 1.2 percent from 2012, while the nation's average daily room rate was up 4.7 percent to $111.69. The combination of more rooms occupied and higher prices gave the industry a 5.9 percent increase in revenue per available room, to $78.63.
The study indicated five metropolitan areas where hotels achieved double-digit rate increases over last year: In the San Francisco/San Mateo region, rates jumped 16.5 percent to a daily average of $201. Other areas with double-digit growth are Honolulu (up 14.9 percent to $235); Anaheim-Santa Ana, Calif. (up 11.8 percent to $145); Miami-Hialeah, Fla. (up 11.1 percent to $145); and Seattle (up 11.1 percent to $147).
Orlando showed the highest year-over-year increase in room occupancy, up 9.8 percent to 69.9 percent. Nashville occupancy went up 8.1 percent, to 72.1 percent.
Occupancy and rates didn't increase everywhere. Detroit, Mich., showed the biggest drop in occupancy€"2.8 percent to 75.2 percent. And in Washington D.C., the average daily rate dropped 2 percent to $122.
Hotel fees continue to increase, says recent industry blog
Hotel industry guru Bjorn Hanson, who heads up hospitality and tourism education at NYU's School of Continuing and Professional Studies, wrote in a recent blog that total fees and surcharges collected by hotels in the U.S. will reach a new high of $2.1 billion for 2013. According to Hanson's analysis, that's up from $2.0 billion in 2012, and more than twice the amount that the industry took in just 10 years ago.
Hanson noted that fees and surcharges are highly profitable. €Most have incremental profitability of 80 to 90 percent or more of the amounts collected,€ he said. He also noted an ever-increasing range of fees and surcharges in the hotel industry, including resort and amenity fees, early departure fees, early reservation cancellation fees, Internet access fees, phone call surcharges, business center fees, room service deliveries, mini-bar restocking, fees for in-room safes, and mandatory tipping.
Other fee increases to be aware of include higher charges for bartenders and other staff at on-site events, special fees for setting up and breaking down meeting rooms, baggage holding fees for guests who leave their luggage with the hotel for a while after they check out, and charges for open, unattended parking.
For the study, STR analyzed U.S. hotel results for mid-August. The report shows that overall occupancy hit 70.4 percent, an increase of 1.2 percent from 2012, while the nation's average daily room rate was up 4.7 percent to $111.69. The combination of more rooms occupied and higher prices gave the industry a 5.9 percent increase in revenue per available room, to $78.63.
The study indicated five metropolitan areas where hotels achieved double-digit rate increases over last year: In the San Francisco/San Mateo region, rates jumped 16.5 percent to a daily average of $201. Other areas with double-digit growth are Honolulu (up 14.9 percent to $235); Anaheim-Santa Ana, Calif. (up 11.8 percent to $145); Miami-Hialeah, Fla. (up 11.1 percent to $145); and Seattle (up 11.1 percent to $147).
Orlando showed the highest year-over-year increase in room occupancy, up 9.8 percent to 69.9 percent. Nashville occupancy went up 8.1 percent, to 72.1 percent.
Occupancy and rates didn't increase everywhere. Detroit, Mich., showed the biggest drop in occupancy€"2.8 percent to 75.2 percent. And in Washington D.C., the average daily rate dropped 2 percent to $122.
Hotel fees continue to increase, says recent industry blog
Hotel industry guru Bjorn Hanson, who heads up hospitality and tourism education at NYU's School of Continuing and Professional Studies, wrote in a recent blog that total fees and surcharges collected by hotels in the U.S. will reach a new high of $2.1 billion for 2013. According to Hanson's analysis, that's up from $2.0 billion in 2012, and more than twice the amount that the industry took in just 10 years ago.
Hanson noted that fees and surcharges are highly profitable. €Most have incremental profitability of 80 to 90 percent or more of the amounts collected,€ he said. He also noted an ever-increasing range of fees and surcharges in the hotel industry, including resort and amenity fees, early departure fees, early reservation cancellation fees, Internet access fees, phone call surcharges, business center fees, room service deliveries, mini-bar restocking, fees for in-room safes, and mandatory tipping.
Other fee increases to be aware of include higher charges for bartenders and other staff at on-site events, special fees for setting up and breaking down meeting rooms, baggage holding fees for guests who leave their luggage with the hotel for a while after they check out, and charges for open, unattended parking.
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