Hotel Industry Is Thriving for Summer
Now is the time when millions of families and individuals from all across the country are starting to plan getaways for summer vacations and long holiday weekends throughout the year. You would be one of 115 million Americans, over a third of the population, traveling at least 50 miles from home to enjoy some time away from work (AAA).
According to Deloitte’s 2018 Travel and Hospitality Industry Outlook, travel and tourism is one of the world’s fastest-growing sectors, with bookings hitting close to $1.6 trillion in 2017. In the U.S., the hotel industry raked in roughly $205.2 billion in revenue in 2017, posting a record year that was up 3 percent from 2016, continuing the consecutive year-over-year growth the industry has been experiencing since 2009. The most important indicator of success in the industry, revenue per available room (occupancy rate multiplied by the hotel’s average daily room rate), increased a whopping 4.9 percent on average.
Perhaps the most exciting part of the current success is that forecasts show growth is set to continue into 2019 due to numerous factors (Deloitte):
- Low inflation and unemployment coupled with rising home and stock values is allowing consumers to spend more
- Intense airline competition is on the rise thanks to a mix of low fuel prices, international competition and low-cost entrants
- Strong business economies are calling for more corporate travel
- Travel is surpassing the demand for material goods; people in the U.S. are more likely to spend money on travel, experiences and recreation as opposed to new clothes and other tangible goods
There is no question that the hotel industry is thriving, and, with the U.S. hotel market being as segmented as it is and the four largest U.S. chains only holding about 45 percent of the market share (Nasdaq), there is a world of opportunity to pursue everything from franchised to independent hotels.
Devon Park Specialty’s Hotel/Motel product was designed to meet the needs of different hotel operations. Below are few of our product features:
- Property limits up to $10 million per location
- Franchised and independently owned properties
- Exterior and interior guest room entrance
- Full service and limited service hotels
- New venture businesses
- Innkeepers legal liability coverage available
- Assault or battery coverage available
Please contact your Devon Park Specialty underwriter today for more information on our product.
As always, thank you for your support and business.
Contact Cheryl Ryan,
Executive Vice President, Division Leader | 844-438-6775 Ext. 2582
Written by Bob Kane
June 7, 2018