Due to the dramatic downturn in travel, properties that remain open are operating with minimal staffing. On average, full-service hotels are using 14 employees, down from 50 before the crisis. Resort hotels, which often operate seasonally based on the area’s peak tourism months, averaged about 90 employees per location as recently as March 13, are down to an average of five employees per resort today.
The key findings of the report include:
- Impact to travel industry 9x worse than 9/11. (Tourism Economics)
- 50% revenue decline (projected) for entirety of 2020 (Oxford Economics)
- Eight in 10 hotel rooms are empty. (STR)
- 2020 is projected to be the worst year on record for hotel occupancy. (CBRE)
- Forecasted occupancy rate for 2020 worse than 1933 during the Great Depression. (CBRE)
- 70% of hotel employees laid off or furloughed. (Oxford Economics and Hotel Effectiveness)
- $2.4 billion in weekly lost wages due to the crisis (Oxford Economics and Hotel Effectiveness)
- Nearly 3.9 million total hotel-supported jobs lost since the crisis began (Oxford Economics)
As travel halted in late February, the hotel industry took immediate action to work with the White House and Congress to help hotel industry employees and small business operators, which represent 61 percent of hotel properties in the U.S.
“The hotel industry is at a critical juncture. We need more resources to survive this unprecedented time,” said Rogers. “Additional funding is vital for small business owners across America, including tens of thousands of small business hoteliers, to help them keep their doors open and rehire and retain millions of employees.”
Click here to AHLA’s most recent industry impact report.