The US hotel crisis is subsiding and the industry is slowly returning to normal. The revival of the hotel sector, which occurred for the first time since the crisis of 2001, is causing cautious optimism among hotel managers.
The head of Marriott International, Mr. Marriott, noted that the downturn experienced by the hotel industry was the worst the industry has ever experienced. Profits in 2001 amounted to only $16.1 billion against $22.5 billion in 2000, and only now can we cautiously note any recovery. Stefan Bollenbach, president of Hilton Hotels Corp., recorded a demand for rooms in the chain’s hotels among business travelers in April and May, after an “empty” first quarter of this year.
Hotels in the so-called mid-range category were in particular demand for the summer. This assurance was confirmed by the head of Cendant Corp. At the same time, managers note that the bulk of customers are local businessmen, while the number of tourists – both domestic and foreign – has not yet increased.
The Internet has been declared one of the sources of the American hotel industry’s woes. In particular, intermediary sites were blamed for the decline in hotel revenues over the past 18 months and, therefore, for aiding and abetting the spread of the discount hotel room epidemic.According to Naomi Smith, head of Smith Travel Research, data analysis shows that the markets that offered the most serious discounts also had the most noticeable decline in occupancy.
At the moment, the real competition in America is between hotels and travel websites offering discounts at these hotels. Online sales of hotel rooms have skyrocketed, as special rates on discount sites attract many customers. At the same time, hotels, especially large hotel chains, would be happy to regain control of distribution, but there is not enough power to do so due to weak direct demand.
The current situation leaves hotel corporations with no choice but to sell through online travel agencies, as it is better to have a sold room, even at a reduced price, than an empty one. Over the next three years, on-line hotel bookings will grow by more than 9%, according to the consulting company PhocusWright Inc.
Resort hotels in the USA
A study by PricewaterhouseCoopers, commissioned by the Kensington, Kentucky-based International Resort Association, showed that in 1999 revenues from resort recreation in the United States amounted to $5 billion (data on revenues of the global resort industry were not available). In 2001, this amount grew to $10.7 billion dollars, which means that the revenues of this industry exceed the revenues from entertainment companies and theme parks, theater tickets and ski resorts.
Today, there are more than 9,000 spas in the United States, including day spas, simple spas, clubs, and spas with healing mineral waters. Among the 155.8 million visits to U.S. resorts in 2001, repeat visits to day spas ranked first. The most interesting thing is that in recent years there has been a sharp increase in visits to resorts by the stronger sex.
For example, in 2003, men accounted for 29% of the total number of resort visitors, which means an increase of 5% in just one year. The spas have become equally attractive to young people, offering them a wide variety of services, from acne treatment to relaxing massages. Medical resorts fully confirm the development of another area – preventive medicine and improving overall physical health. While 68% of spa visitors aim to relieve stress and its consequences or have a relaxing vacation, 29% said they visit them to improve their health. Another touch is that some resorts, such as Canyon Ranch in Arizona and Massachusetts, and the Double Eagle Resort and Spa in California, offer special “Health Programs” where a patient is examined by a team of doctors and undergoes a series of tests and receives a set of healthy dietary prescriptions and a specially designed exercise schedule. Such services are much more extensive than individual doctors can afford at a regular appointment.