The hotel industry in 2021 is projected to receive $59 billion less in business travel revenue compared with 2019, according to a report from the American Hotel & Lodging Association and Kalibri Labs released Wednesday. The association estimated that the decline is on top of the $49 billion decline in business travel revenue in 2020 from 2019.
Business travel is the hotel industry’s largest source of revenue, and it includes corporate, group, government and other commercial categories, according to AHLA. Some analysts and executives don’t expect business travel to reach pre-pandemic levels until 2024.
Chip Rogers (AHLA President and CEO) stated that “business travel is crucial for our industry’s viability,” especially during the winter and fall months, when leisure travel typically begins to decline.” “Continued Covid-19 fears among travelers will only worsen these problems.”
According to the report, New York is projected to experience a sharp decline in hotel business travel revenue in 2021, as compared to 2019. Washington, D.C., San Francisco, San Francisco, Orlando, and Chicago are the markets with the highest expected drops in revenues.
The states with the greatest declines of hotel business travel revenue in 2021 are New York, California, Florida, Texas, Illinois, and Texas.
The report follows an AHLA survey released in late August that indicated that because of rising Covid-19 cases, 52 percent of business traveler respondents were likely to cancel existing travel plans without rescheduling them, while 60 percent said they planned to postpone existing plans and 67 percent planned to take fewer trips.