We're now a month into the year, here's what have we learned.
The hotel industry has experienced significant changes in recent years, and 2023 is expected to bring new opportunities for growth and revenue. The hospitality sector has been impacted by the COVID-19 pandemic, with many hotels experiencing a decline in revenue and occupancy rates. However, as the world continues to recover from the pandemic and travel restrictions ease, the hotel industry is poised for a resurgence in 2023.
2023 could be a year of recovery and growth for the hotel industry, with rising RevPAR, but challenges like inflation may cool investment activity.
- Peter Berk, President, PMZ Realty Capital
Increased Demand for Domestic and International Travel
One of the major drivers of hotel revenue growth in 2023 is expected to be the increasing demand for domestic and international travel. As more and more people receive vaccinations and feel comfortable traveling, there will be a significant increase in demand for hotel rooms. This will particularly be the case for popular tourist destinations, where hotels are expected to experience higher occupancy rates and, as a result, higher revenue.
Rise of Virtual Meetings
Another factor that is expected to contribute to hotel revenue growth in 2023 is the rise of hybrid and virtual meetings. With the pandemic forcing many businesses to adopt remote work and virtual meetings, many companies are now looking to find new ways to bring their employees together. Hotels are well-positioned to take advantage of this trend by offering on-site and virtual meeting options, providing a new source of revenue.
Investment in Technology and Customer Experience
Hotels that invest in technology and customer experience are likely to see the biggest growth in revenue in 2023. With guests becoming increasingly accustomed to using technology to book rooms and manage their stays, hotels that offer a seamless and convenient experience are more likely to attract customers and generate higher revenue. Additionally, hotels that invest in amenities such as high-speed Wi-Fi, mobile check-in, and virtual concierge services are expected to see a positive impact on their revenue growth.
