Faculty & Research
Hotel Managers Plan to Stay the Course, A CHR Study Finds
FOR IMMEDIATE RELEASE
Linda Myers, 607-277-5035, lbm3@cornell.edu
-Despite a drop in current bookings, hotel operators look forward to an improving economy.
A survey of over 1,200 hotel general managers finds no panic in the hotel industry, even though room sales have fallen off and the meetings and convention business is down in some markets, 22 percent of the responding hotels reported no cancellations in their group bookings. The survey was conducted by the Center for Hospitality Research at Cornell University in conjunction with Realtime Hotel Reports. The survey was conducted via facsimile machines for speedy response.
"Hotel operators are optimistic and intend to stay the course," said Cathy Enz, executive director of the Center and principal investigator. "Although the general managers have refocused their marketing programs to highlight local and regional business, hotels are not planning major changes in operations. They recognize that the current situation will turn around." Enz added that the largest group of hotel operators expect an industry recovery to begin in the third quarter of 2002. For the short term, hoteliers anticipate the current business slowdown to carry through the end of 2001, with business gradually picking up in the first half of 2002.
Perhaps the greatest change in hotel operations in the wake of the September attacks is that the general managers have refocused their marketing programs. In particular, 58 percent of the GMs are directing their marketing efforts toward local business, one-third are promoting local weekend getaways, and 30 percent are focusing heavily on regional business.
About one-third of the hotels reported that they were discounting rates to woo travelers, but an equal number said they were not offering substantial discounts. The group business has seen a particular drop off, with over 50 percent of the hotels reporting a substantial number of cancellations in meetings and conferences.
Most of the hoteliers also plan to hold firm on human resources. Despite the hotels' altered prospects, 25 percent of the GMs plan to make no change in their staffing levels, and 20 percent expect to keep employee hours about the same. As of the mid-October date of the survey, 44 percent had not asked employees to use vacation or comp time, although 34 percent had asked their employees to work reduced hours.
One interesting note is that a majority of hoteliers see no need to revise or upgrade their security preparations or programs. "The hotel industry has long been sensitive to the need for guest security," Enz noted. "One example of this is the changeover to electronic locks on guest-room doors."
For more information, contact us at: http://www.hotelschool.cornell.edu/research/chr or 607-255-9780.