Hotel Industry Soars with Increased Business Travel and Preference for Lodging Options

WASHINGTON Nov. 16, 2023 The hotel industry is poised for a strong finish to 2023, buoyed by an increase in business travel and a continued preference among both business travelers and leisure enthusiasts for lodging options in hotels.

A survey conducted by the American Hotel Lodging Association AHLA, in collaboration with Morning Consult, revealed that 68 of Americans whose jobs involve travel are likely to engage overnight trips for business during the last three months of this year. This is a notable rise from the previous year's figure of 59. Hotels emerged as the favored lodging choice for an impressive 81 of these business travelers.

The survey also shed light on plans for holiday travel, finding that while Thanksgiving travel intentions remn slightly lower at 32, with only those likely to stay overnight increasing by a percentage point compared to the prior year, Christmas is experiencing a more pronounced uptick, with overnight travelers jumping from 31 to 34. Moreover, despite a slight dip in leisure travelers planning for overnight trips during this period from 39 last year to 37 this year, hotels continue to benefit as they remn the top choice among those who do.

The survey's findings are particularly significant given that travel attitudes have largely returned to pre-pandemic levels. A majority of Americans now indicate their likelihood of staying in hotels has normalized compared to before the pandemic, with nearly 70 of business travelers stating that their employers either restored or ramped up business travel frequencies post-COVID.

AHLA President CEO Chip Rogers commented on these findings, emphasizing that hotels are stepping up to meet guest needs as travel trs have largely returned. Hotels are investing in providing exceptional guest experiences as they adapt to the resurgence of overnight trips, he stated. However, Rogers also highlighted a significant challenge for the hotel industrythe nationwide shortage of workers preventing them from fully recovering their pre-pandemic workforce.

As of today, according to Indeed job listings, there are nearly 85,000 open positions across the country in hotels. The Bureau of Labor Statistics has reported that as of September, there were approximately 9.6 million job openings nationwide, but only about 6.4 million unemployed individuals avlable for employment.

As of September, average hotel wages nationwide stood at $23.36 per houra significant increase compared to pre-pandemic levels by nearly a quarter 24.6which is faster growth than the economy-wide wage increase rate +18.8.

In further elaboration on the labor challenges for hotels:

• Establishment of an H-2B Returning Worker Exemption: Congress could facilitate this step to enable employers in seasons with consistent and predictable labor needs, like hotel operations during peak travel periods.

• Passing the Asylum Seeker Work Authorization Act: This bill offers a pathway for asylum seekers, potentially offering them employment authorization, which would increase the number of avlable workers in various sectors including hotels.

• Support through the H-2 Improvements to Relieve Employers HIRE Act: By passing this legislation, Congress can address and mitigate some of the challenges that employers face in securing qualified workers by simplifying the H-2B visa application process and reducing barriers for foreign workers who are interested in employment opportunities in the United States.

In summary, hotels play a crucial role in driving economic growth post-pandemic. However, to sustn this momentum, it's imperative for Congress to address workforce challenges by supporting initiatives that facilitate more worker avlability across different sectors including hospitality.
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