The first half of 2023 proved to be a roller coaster for the California hotel industry, with varying performance across luxury, full-service, and select-service segments. The year started on a high note, especially for luxury hotels, before experiencing a dramatic decline in Q2 across all major areas, compared to the same period in 2022.
Hotels in the United States saw general pressure on profit margins in the first half of 2023, with Gross Operating Profit (GOP) margin falling by 1 percentage point compared to the same period in 2022. A closer look at brand-scale performance reveals that the extremes were particularly affected: the luxury and midscale & economy segments exhibited the greatest year-on-year margin declines.
Today, the global hotel industry can be seen grappling with rising costs and varied demand across regions. The industry's ability to adapt to these challenges will be crucial in determining its recovery trajectory in the post-pandemic era.
In the latest updates on the regional market performance of the hotel industry in the United Kingdom, we share year-to-date data from May for 2023 compared to the same period in 2022 and 2019, according to HotStats’ monthly Hotel Benchmarking reports.
To fully understand how things are looking like in Asia Pacific, we need to take a step back and look at how things have progressed across the 4 key global hospitality regions over the past 40 months. No one likes to talk about Covid19 anymore, but we need to do so to understand the baseline.
As the cost of living crisis continues to sweep across the globe, businesses in all sectors are feeling the pressure to maintain profitability while also providing high-quality services to their customers.
To say that there is a lot going on within the hospitality industry in The Asia Pacific Region is a dramatic understatement. It isn’t a tale of 2 sides, rather a tale of 20 sides! There is so much happening that is and can affect demand, it is quite simply mind boggling. For today’s article we are focusing on the world’s 3rd largest economy, one that holds 5.14% of the global GDP of our planet. Japan.
As the global pandemic appears further in the rearview mirror, hotel performance is driving back to more recognizable, dependable and stable movements on the top and bottom line.
HotStats’ August performance data showed that both revenue and profit were following a normal, typical summer seasonal pattern, but unrestrained inflation, higher interest rates and foundering financial markets augur a potential global recession that could derail the ongoing hotel comeback.
Efficiency comes in many forms, both practical and intangible, and all hoteliers are seeking ways to effectively improve it in order to generate higher profit margins and deliver bottom-line results. Here are five tips to improve overall efficiency and make more money.