Hotel Demand for First 6 months of 2006 in U.S.
|New York, November 7, 2006 – PricewaterhouseCoopers research, supplemented
by the U.S. Census Bureau, Smith Travel Research (STR) and Travel Industry
Association of America (TIA) data, indicates that, following a decline
after September 2001, total business demand for U.S. hotels increased by
4.6 percent in 2004, by 3.8 percent in 2005 and by 0.9 percent in year-to-date
June 2006. In comparison, total leisure demand grew by 3.3 percent
in 2004, 1.7 percent in 2005 and declined by 2.2 percent in year-to-date
The hotel business demand per capita of the adult U.S. resident population
grew by 2.6 percent in 2005 but is expected to slow to 0.8 percent in 20061.
Hotel leisure demand per capita of the adult U.S. resident population grew
by 0.5 percent in 2005 but is expected to decline by 0.3 percent in 2006.
Comparatively, hotel business demand per capita of domestic travelers in
2005 grew by 0.3 percent, while the hotel leisure demand per capita of
domestic travelers declined by 1.7 percent during the same period.
Occupied Room Nights (in millions) - 1999 to Year-to-Date June 2006
According to Bjorn Hanson, Ph.D., principal in PricewaterhouseCoopers' Hospitality & Leisure practice, “Slowing per capita demand growth indicates that the industry is entering the mature phase of this cycle. The trends also reflect that businesses and consumers are responding to the cumulative increases in hotel rates. Still, demand growth continues to exceed increases in supply.”
Over the last two years factors contributing to the continued but slowing growth in the hotel business demand per capita in the U.S. include:
Business and Leisure Demand
Per Capita of Domestic Travelers
Source: Smith Travel Research and Travel Industry Association of America.
1 A technique to analyze the increased number of occupied rooms is to calculate per capita business and leisure demand. The per capita analyses are based on (1) U.S. Census Bureau's adult U.S. resident population estimates and (2) the Travel Industry Association of America's (TIA) domestic person-trips estimates.
Christine Da Silva
|Also See:||International Travelers to the U.S Increased by 6.7% in 2005; International Guest Room Nights Represent 10.3% of the U.S. Lodging Demand / August 2006|
|Hotels Charging Fees and Surcharges for Just About Anything; PwC Forecasting 7% Increase for U.S. Lodging Industry in 2006 / March 2006|