New data shows the hotel industry is projected to end 2021 down more than $59 billion in business travel revenue compared to 2019. This is not the best news to be publishing in these times as people are losing their jobs and can’t find ways to put food on the table.
According to a report from the American Hotel & Lodging Association (AHLA), the hotel industry is expected to end 2021 down nearly 500,000 jobs compared to 2019, in addition to the massive financial losses expected. The problem faced here is that is a recovery possible for these people.
Business travel being down more than $59 billion in 2021 follows the nearly $49 billion in losses the industry endured in 2020. Business travel revenue is not expected to reach pre-pandemic levels until 2024. Business travel includes corporate, group, government and other commercial categories.
“While some industries have started rebounding from the pandemic, this report is a sobering reminder that hotels and hotel employees are still struggling,” AHLA CEO Chip Rogers said. “Business travel is critical to our industry’s viability, especially in the fall and winter months when leisure travel normally begins to decline.”
“Continued COVID-19 concerns among travelers will only exacerbate these challenges,” Rogers continued. “That’s why it’s time for Congress to pass the bipartisan Save Hotel Jobs Act to help hotel employees and small business owners survive this crisis.”
Another recent AHLA survey found that most business travelers are canceling, reducing, and postponing trips amid rising coronavirus cases. The lack of business travel and events has major repercussions for employment and underscores the need for targeted federal relief.
The markets projected to end 2021 with the largest declines in hotel business travel revenue include New York City, Washington D.C., San Francisco, Orlando, Chicago, Los Angeles and Las Vegas.