The Biggest Challenge to the Recovery of Hotels in 2021
Photo Credit: Reviving the tanked meetings and event business is key in restoring hotel financial performance around the world, especially in the U.S. Wikimedia / Erik Drost
Skift Take
Leisure travelers proved there was pent-up vacation demand once travel restrictions lifted. Hotel owners need the corporate travel and events sector to follow suit in 2021.
If the hotel industry had one thing to celebrate during the pandemic, it’s that leisure travelers showed they will still take vacations when travel restrictions aren’t in place.
But hoteliers have to figure out how to jumpstart cratered business and group travel demand in the new year to have any hope of a financial recovery.
“Group business drives hotel profitability as a source of food and beverage revenue and high occupancy nights, and, because it typically books further in advance, it will inform everything from marketing strategy to revenue management,” Nathan Seitzman, a partner in McKinsey & Co.’s travel practice, told Skift in June. “So even when business and leisure transient travel fully recover, a lagging group recovery could have a dispro
