New study shows massive losses in 2021 for hotel business travel
New data shows the hospitality industry is expected to end 2021 with a decline of more than $59 billion in business travel revenue compared to 2019.
According to a report by the American Hotel & Lodging Association (AHLA), the hospitality industry is expected to end 2021 down nearly 500,000 jobs from 2019, in addition to expected massive financial losses.
The more than $59 billion drop in business travel in 2021 follows losses of nearly $49 billion the industry suffered in 2020. Business travel revenue is not expected to reach the levels of before the pandemic before 2024.
Corporate travel includes corporate, group, government and other commercial categories.
“As some industries have begun to rebound from the pandemic, this report is a sobering reminder that hotels and hotel workers are still struggling,” said AHLA CEO Chip Rogers. “Business travel is critical to the viability of our industry, especially during the fall and winter months when leisure travel normally begins to decline.”
“Ongoing concerns about COVID-19 among travelers will only exacerbate these challenges,” Rogers continued. “That’s why it’s time for Congress to pass the bipartisan Save Hotel Jobs Act to help hotel workers and small business owners survive this crisis.”
Another recent AHLA survey found that most business travelers are cancelling, reducing and postponing trips amid rising coronavirus cases. The lack of business travel and events is having a major impact on employment and underscores the need for targeted federal assistance.
The markets expected to experience the largest declines in hotel business travel revenue at the end of 2021 are New York, Washington DC, San Francisco, Orlando, Chicago, Los Angeles and Las Vegas.