Coming off a catastrophic 2020 due to the COVID-19 pandemic, expectations were that 2021 would bring some relief to the hospitality industry with the release of the newly developed vaccines. 2020 saw occupancy rates decrease 33.3% to 44% occupancy from the previous year. (1) STR and Tourism Economics recently upgraded their 2021 hotel forecast for occupancy to a projected 54.4%, a 1.4% increase from the previously released forecast. While those numbers certainly were well received, based on STR data from 2018 for occupancy rate was 66.1%, indicating that 2021 will still come in 12% lower than that mark.
If you work in the hotel industry, none of these figures are all that surprising. While the numbers are trending upward, the industry is still facing additional headwinds with the COVID-19 Delta and Omicron variants, inflation, and workforce participation. For 2022, CBRE Hotels Research is currently forecasting an 8% occupancy rate increase (62%) with a 7.1% increase in the daily rate. This will result in a 15.6% increase in RevPAR for the year.
Business Versus Leisure Travel
Historically, business travel represents approximately 30% of total travel expenditures per year and is currently between 50-60% of normal. Business travelers tend to spend much more per trip than leisure travelers, so this sector has an outsized impact on the travel industry. Experts see an uneven return to normal business travel based on several factors including the ongoing pandemic, airline flight unpredictability, and inflation related costs.
Reviewing operating costs, CBRE predicts that business convention travel, while still lagging from previous years, will resume first in areas with lower costs, fewer health mandates and that feature less costly airfares. Cities that fit these criteria include Dallas, San Antonio, Las Vegas, and Orlando among others. The U.S. Travel Association estimates that we won’t fully recover for business travel until sometime in 2024.
When it comes to leisure travel, CBRE “expects leisure demand will continue to boost the performance of properties in resort and remote locations, supplemented by growth in ‘bleisure’ travel, which combines business and leisure pursuits.” (2) Marriott International remains bullish for 2022 boosted by their 2021 3Q worldwide occupancy rate of 58%, compared to a disappointing 23% the year prior during the height of the pandemic. Marriott’s CFO, Leeny Oberg listed a few reasons for the increase that includes pent-up demand, increased savings rates, and more flexibility in travel. The chain has continued to see a greater increase in leisure travel over business since 2010.
Expectations for 2022
The industry still faces multiple challenges on several fronts but expectations going forward are much higher than they were going into 2021. As long as the Omicron variants is as mild as some experts assert and inflation worries can be efficiently managed, both business and leisure travel should see increases in the coming year.
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(1) Statista, “Occupancy rate of the US hotel industry 2001-2020”,
March 29, 2020
(2) Hotel Management, “CBRE updates U.S. lodging forecast to account
for delta variant”, October 12, 2021
MESSAGE FROM ENERGY STAR:
Dear ENERGY STAR® Most Efficient Partner:
Congratulations! The U.S Environmental Protection Agency (EPA) will recognize some of your models as ENERGY STAR Most Efficient 2021. All recognized models will be highlighted on the ENERGY STAR Most Efficient web page beginning January 5, 2021.
For all other product categories, EPA will use certification data to recognize products and will contact partners as new models that meet the ENERGY STAR Most Efficient criteria are certified. Since the recognition criteria have not changed for ceiling and ventilating fans, computer monitors, dehumidifiers, clothes dryers, refrigerator- freezers, and room air conditioners, models recognized in 2020 will be automatically recognized in 2021.
The ENERGY STAR program will communicate proposed Most Efficient 2021 treatment for dishwashers and televisions in the coming weeks.
Please visit the ENERGY STAR website for more information on obtaining ENERGY STAR Most Efficient recognition. The ENERGY STAR Most Efficient 2021 designation and usage guidelines can be found here. The ENERGY STAR Most Efficient designation is intended to be used on point of purchase material, product literature, and websites only. This designation may not be applied to products or product packaging. Failure to abide by these guidelines may result in loss of recognition.
Come January 5, 2021, if your models meet the ENERGY STAR Most Efficient 2021 key product criteria for product categories that do not require application but are not yet featured on the ENERGY STAR Most Efficient product pages or if you have any other questions, please contact MostEfficient@energystar.gov.
We look forward to working with you in 2021 to promote your ENERGY STAR Most Efficient models.
Indoff Inc., a North American distributor of products for the Commercial Office Interiors, Material Handling, Business Office Products, Commercial Appliances, Promotional Products, and Energy Solutions industries, kicks off its 50th year in business in April 2020. Indoff has grown into a $175 million distributor with over 400 Sales Partners in the United States, Canada, and Mexico.
Indoff is based on the belief that it is the sales professionals who bring the value to the transaction. Indoff Sales Partners focus on satisfying their customers’ needs with the right products and services to help make those customers more successful. Indoff Partners choose the best vendor and best solution – not a cookie cutter one that Indoff happens to stock. From a foundation in the Material Handling industry, Indoff applied their business model to Commercial Interiors, Office Supplies, Promotional Products, Energy Solutions and Commercial Appliances Today Indoff serves just about every type of business in North America, including government, healthcare, legal, construction, education, hospitality, senior living, multi-family and so many more.
“Indoff’s longevity and stability in business are not only important to our Sales Partners, but also to all of the vendors we work with and the customers that we serve,” said Jim Malkus, President and CEO. “Customers are comfortable working with Indoff because they know that they will get the product they ordered, and if there is an issue, Indoff will make it right. Vendors know that they will be treated fairly and that they will be paid for their goods on time.”
“Where Solutions Take Shape” is more than a tagline at Indoff. It describes the ability to combine an experienced group of Sales Partners, who bring years of expertise in their fields, with the ability to source and purchase from 1,000’s of different manufacturers. It ensures that clients get the products and services that work best to solve their needs. “Our 50 years in business is testament to the passion and dedication of our Partner group as well as the Corporate staff in St. Louis,” added Jeff Ross, EVP, Sales and Marketing. “Over 100 of our Partners have been with Indoff for 20 or more years, and 200 have been with us for over five years. We are excited to see what happens in our next 50 years.”
January 2, 2019 – Absocold, a manufacturer of a premium line of refrigerators for the hospitality industry, government, student housing and assisted housing facilities, has announced they have extended their warranty to a full two-years for the Suite Fridge® Hospitality Line. This warranty guarantees the original purchaser that the model will be free from defects in material and workmanship for 2-years from the date of purchase when used and maintained according to instructions provided with the units.
Absocold additionally guarantees, to the original purchaser, the hermetic motor (compressor) furnished as part of the Suite Fridge refrigerator for a period of five years from date of purchase when operated and maintained according to instructions supplied with the units.
The 1.1 cu. ft. ARD104 and the 2.0 cu. ft. ARD204 are commercially rated, Energy Star® Qualified refrigerators that also feature the proprietary Quick Chill ‘n Snooze® feature. Guests can use the two- hour chill feature to quickly cool beverages and food products. The Snooze feature allows guests who are light sleepers to turn the refrigerator off for 8 hours with an auto restart feature to return it to normal operation after that period of time.
“We manufacture a very reliable refrigerator with innovative features for the hospitality industry,” said Josh Long, General Manager, Absocold brand. “Over the years we have seen very few replacement units being sent out which gives us the confidence to offer our customers the added protection of an additional year on our Suite Fridge product. The longevity of this unit is extremely important to our customers when purchasing for their hotels and motels. Knowing that they are getting an exceptional product, fully backed with an industry leading warranty, enables them to worry about more important things, like making sure their guests are completely satisfied with their stay.”