Luxury hoteliers see light at the end of the tunnel

Denver Travel Industry Examiner
Joseph Sobin

As the hospitality industry slowly emerges from the recession of 2009, many eyes are on the luxury hoteliers which endured the largest drop in business during the downturn. The drop in bookings was exacerbated by the retreat in the MICE (Meetings, Incentives, Conferences and Exhibitions) sector including the well-publicized call-outs of luxury resorts in Las Vegas and California catering to incentive travel.

The recovery seems to have started as many luxury properties in the United States are reporting demand increases of 5% to 8% during the past 6 months according to statistics mentioned at the Americas Lodging Investment Summit held in San Diego this week . Much of this demand has come from the individual traveler taking advantage of attractive rates which are expected to remain low through 2010.

When will luxury hoteliers be able to collectively raise rates? When the MICE sector is able to spend again without fear of retribution from the popular press. While various corporations were vilified in the popular press for their "junkets", not one reporter or news organization dug deeper into the stories to understand such expenditures produce a multiplier effect i.e. jobs for a local/regional economy. For every hotel room booked, no matter the price-point, one can calculate the job retention of multiple positions within and outside the bricks and mortar hotel.

We may collectively look back on 2010 and pin-point when the recovery began and reminisce about a time when luxury hotels were a bargain.