The Most Important Story in Hotels in 2022
Photo Caption: Fairmont Century Plaza in Los Angeles opened in 2021.
Skift Take
Hoteliers managed to maintain pricing discipline in 2022, a practice that has long eluded the industry.
A pent-up surge in consumer demand for travel gave many hotel companies pricing power in 2022. But hoteliers charged the highest rates the market could support for more than just one-off circumstantial reasons. A critical ingredient in the formula was that hoteliers developed a newfound pricing discipline during the pandemic recovery — even when business travel was historically weak and international tourism was slow to recover in many markets.
Hoteliers' pricing discipline was the sector's most important story in 2022 because it suggested that hotels will be more resilient in future downturns than in the past.
For global hotel groups, the post-pandemic boom drove record revenue and profit. Hyatt Hotels Corp notched record average room rates system-wide in the second quarter, which led to record management and franchisee fees. Accor reported record revenues in the third quarter. Hilton reported the highest margins in its history. Indian Hotels
