Could it be raining RevPAR? Hoteliers may want to do break out their umbrellas upon hearing the hospitality forecast for 2015. Experts predict they will see ADR (average daily room rate) growth driving RevPAR (revenue per available room) in record numbers throughout the coming months. Below, SkyTouch Technology shares four key areas contributing to this trend and driving overall U.S. hotel profitability:
Strength of the Dollar. The U.S. dollar is flexing its muscle in 2015. With the dollar reportedly the strongest it has been against the euro in at least four years, the hospitality industry is seeing an influx of guests ready to book and spend. Hoteliers can thank the steadily improving U.S. economy for their projected gains in 2015.
Falling Oil and Fuel Prices. Gas prices will steadily fall in 2015, leading to greater gains for hotel operators. Access to cheaper gas will translate into more motivation and ability for guests to travel and spend. The question for hoteliers in the coming months is, how will they leverage savings at the tank to drive bookings and revenue?
Increase in Corporate & Leisure Travel. More affordable and accessible travel options will trigger a steady increase in both guest segments. Thanks to more disposable income, leisure travelers will opt to take more trips and spend more on room upgrades and hotel amenities. The healthier economy is also contributing to more robust corporate travel budgets, with business travel expected to increase by three to four percent in 2015.
Investing in Cloud Technology. Hotel CIO’s are recognizing that the right tech tools can help them drive profits and reap ROI. They are investing in interactive hotel-branded apps and cloud technologies that can help them run operations more efficiently and cost effectively. Users of the SkyTouch Hotel OS property management system consistently reduce costs and increase profits by employing this forward-thinking approach to their hotel property management needs.
The good news is that the sky’s the limit when it comes to the potential for hotel profitability in 2015. How hoteliers choose to embrace the above trends will ultimately determine their profitability and success.
