Hotel business travel revenue is projected to decline by 80% in the top 20 destinations by 2021.
By Wolf Richter for WOLF STREET.
Although U.S. leisure travelers have been in place, for U.S. hotels, revenue from important, lucrative business travel (corporate, group, government, and other business travel) is expected to decline by $ 59 billion in 2021 starting in 2019, according to 2019 at the American Hotel and Lodging Association (AHLA) and Kalibri Labs today.
According to AHLA data, for the 20 largest destinations in the United States, revenue from hotel business travel is expected to plummet by 80%, from $ 38 billion in 2019 to $ 7.6 billion in 2021.
The largest destination, the New York subway, is projected to fall 88% of annual hotel business travel revenue, from $ 4.6 billion in 2019 to $ 531 million projected for 2021.
In Orlando, the second largest destination in 2019, annual hotel business travel revenue is expected to plummet by 81%, from $ 2.8 billion in 2019 to $ 518 million projected in 2021.
The third largest destination, the Washington DC subway, is projected to fall 86% in hotel business travel revenue, from $ 2.7 billion in 2019 to $ 371 million in 2021.
Here are the top 20 destinations for business travel hotel revenue in 2019, total revenue projected for 2021, and percentage difference:
| 20 largest business travel destinations | Business travel revenue, millions of dollars | % Immerse yourself | |
| 2019 | 2021 projected | ||
| New York | 4,560 | 531 | -88% |
| Orlando | 2,796 | 518 | -81% |
| Washington Metro, DC | 2,741 | 371 | -86% |
| Los Angeles | 2,683 | 752 | -72% |
| San Francisco | 2,531 | 178 | -93% |
| Chicago | 2,528 | 346 | -86% |
| las Vegas | 2,326 | 670 | -71% |
| Boston | 1,672 | 191 | -89% |
| Atlanta | 1,671 | 491 | -71% |
| Dallas | 1,611 | 460 | -71% |
| San Diego | 1,611 | 395 | -76% |
| Hawaii Islands | 1,530 | 346 | -77% |
| Phoenix | 1,349 | 380 | -72% |
| Miami | 1,327 | 497 | -63% |
| Houston | 1,291 | 412 | -68% |
| Seattle | 1,241 | 193 | -84% |
| St. Joseph | 1,227 | 176 | -86% |
| Anaheim | 1,155 | 256 | -78% |
| Denver | 1,087 | 237 | -78% |
| Nashville | 981 | 238 | -76% |
| Total | 37,919 | 7,640 | -80% |
This analysis follows the AHLA survey of business travelers, published two weeks ago, which found that in the midst of the increase in COVID-19 cases, 67% of business travelers planned to make fewer trips, the 52% would probably cancel existing travel plans without rescheduling them and 60% planned to postpone existing travel plans.
The fifth largest destination in the previous table, San Francisco, is expected to see a 93% collapse in hotel business travel revenue, from $ 2.5 billion in 2019 to $ 178 million in 2021, according to AHLA.
At the Moscone Center, San Francisco’s convention center, there was almost nothing scheduled to start the rest of the year, just four events. At least one of them, the 64th International Motor Show in November, has already been canceled.
Another, the 76th Annual Meeting of the ASSH (American Society of Head Surgery), is still scheduled for Sept. 30 through Oct. 2, but with an “online schedule” and an “attendance option.” on line”.
The Cannabis Business Summit & Expo 2021 was scheduled to take place in early August, but was rescheduled in mid-December and everyone is keeping their fingers crossed.
The SEMICON WEST conference and the Design Automation Conference (DAC) were scheduled to take place jointly in February this year, but were rescheduled for December.
So, some conferences are starting to show up and it looks like they will take place, but potential attendees are reluctant and organizers are wary.
This is the situation everywhere. Conference organizers try to bring people together and put some souls in the big convention centers, and they’re doing it, but it’s hard and slow.
The reluctance among companies to send employees to conferences and even to hold conferences is also reflected in a still contemptuously low attendance.
In the United States, companies had not returned to the office in large numbers, and the official dates of return to the office announced by large companies, whatever format they would have taken to return to the office, since d ‘one day a week up to 5 days a week bell to bell: continues to be expelled.
Office occupancy, measured by the workers who actually show up at the office, struggled to recover from the terribly low levels, but in the last two months it has fallen. According to Kastle Systems, the average of ten cities has fallen to 31% of what it was before the pandemic, which means it has dropped 69% from the Good Times:
The longer business and office travel is replaced by video calls and work from home, and the more people find out how to make it work and be productive and the more life around them adapts, the harder it will be. never return to normal old.
Some of these business trips and some of these office occupations will surely return, but there is growing doubt that the old normal was such a great idea to start with, and now there are initiatives underway to find out what kind it can be. seem a new normal.
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