Recent research reveals that the hospitality industry is still depressed despite signs of a recovering economy.
Lower demand has resulted in a continuing downward spiral in nationwide occupancy and revenue-per-available-room () numbers. According to Smith Travel Research, overall RevPAR fell 4.5 percent for the week ending June 1, while occupancy had fallen to 58.4 percent nationwide. Upscale hotels have been the hardest-hit, registering double-digit RevPAR fall-off figures of between 10 and 12 percent, according to STR.
Meanwhile, Torto Wheaton Research, a Boston-based research and consulting firm, has released data stating that the past few weeks' overall economic growth should have driven up hotel demand, yet the industry is still somewhat depressed. The firm's analysis goes on to state that it has been able to quantify the effects that fear of flying has had on the industry since September 11. Torto Wheaton statistics show that in September of 2001, following the terrorist attacks, fear of flying made up nearly 25 percent of the overall factors that have resulted in lower hotel demand, but that by January, that figure had dipped to 3.4 percent.