The hotel and lodging market in the United States had a record year in 2023,
thanks to robust demand and historically high average daily rates, according to Phocuswright’s U.S. Hotel &
Lodging Market Report 2023-2027.
The labor shortage
that plagued the industry, causing service declines and high costs, eased somewhat, allowing hotels
to resume services such as food and beverage and daily housekeeping.
Overall, the hotel segment captured more than 4 in 10 U.S. travel dollars spent in 2023, second only to the air segment.
Hotels still face
many challenges, including rising operating costs as they invest in leadership
and talent. They are also embracing new technologies such as artificial intelligence to streamline services
and personalize offerings – big investments that should ease costs going
forward.
With ADR growth slowing in 2024, hotels are counting on a strong economy
to sustain demand. As of the first quarter of 2024, the economy remains robust, although some economists predict a slowdown in the
second half the year.
Here are 5 key findings from Phocuswright’s report that you should know.
5 things to know about the U.S. hotel market – Phocuswright Research
This report is part of the U.S. Travel Market Report 2023-2027 series, which features an overview of the U.S. travel market, along with detailed data and analysis of five key segments: airline, hotel and lodging, car rental, cruise and packaged travel. A stand-alone report dedicated to online travel agencies rounds out the coverage. Collectively, the series provides comprehensive market sizing, projections and analysis for the U.S. travel industry from 2021-2027.
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