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Hotels and Accommodations - US - September 2008
Travel: USA Price: £2677 / $3995 / €3196
Report sections
click here to read 'about this report' »
Contents
Scope and Themes
Executive Summary
Market Size and Forecast
Competitive Context
Segment Performance
Segment Performance—Hotels and Motels
Segment Performance—Casino Hotels
Market Drivers
Leading Companies
Brand Qualities
Innovation and Innovators
Advertising and Promotion
Usage
Accommodation Options and Preferences
Brand Preferences
Enrollment in Frequent Guest Programs
Methods for Finding/Researching Hotels
Booking Methods
Desired Hotel Amenities
Perceptions About Hotels
Hotel Usage by Non-guests
Appendix: Other Useful Consumer Tables
Appendix: Trade Associations
 
  Research Methodology
Latest news updates to this report
(click here for all news updates »)
29-07-2010  Study: Overall hotel satisfaction increases
23-07-2010  Starwood net income dips in Q2
15-07-2010  Commercial real estate on hold
15-07-2010  Omnicom intros first Orbitz work
13-07-2010  Marriott offers Gulf Coast guarantee
...more »
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About this report

Revenue in the hotels and accommodations market grew between 2003 and 2008. However, when inflation is factored in, growth was found to be a sober 7% and is forecast to gain only 1% between 2008 and 2013 in inflation adjusted dollars. The softening of the U.S. economy and the market's failure to capture a large enough share of international travelers are driving factors. This report covers the U.S. market for hotels and accommodations including hotel/motels and casino hotels.

Analysis and insights include:

  • Which segments are the fastest growing and which are feeling the effects of the current economy

  • Size and growth forecast for the market as a whole and for hotel/motels, casino hotels and bed and breakfasts

  • Share of revenue generated by guest room rentals, gaming, food, alcohol, and other sales

  • Market drivers and opportunities for innovation

  • Leading companies in the market

  • Marketing themes and how marketing dollars are spent

  • Consumer opinions and behavior

If you want more details about this particular report, please contact the Mintel information team on  +1 312-932-0400 in the U.S.,  +44 028-90-241-849 in Northern Ireland,  +353 048-90-241-849 in the Republic of Ireland or  +44 (0)20-7606-6000 in the UK and the rest of the world, or email info@mintel.com.
Key words and phrases within this report

Hilton; Marriott; Holiday Inn; Best Western; Wyndham; Comfort Inn; Days Inn; Westin; Starwood; Bare bones guests; Sheraton; Hyatt; Standard room lodgers; Four-stars; Hotels; Hampton Inn; GDP; Fairfield Inn; Asian; PricewaterhouseCoopers; Hampton; Crowne Plaza; Hispanic; RevPAR; Accor; The 10 largest hotel groups worldwide; Wii; Choice Hotel; Doubletree; Customizable consistency; Atlantic City; Bureau of Economic Analysis; Department of Commerce; Disposable personal income; Fuel prices; PKF Consulting; Choice; Edition; Residence Inn; Travelodge; Accommodation preferences; ASTA; CPI; Blur; Flux; XYZ; ADR; Smith Travel Research; NYLO; Las Vegas; OTTI; Real GDP; Travel Industry Association of America; Global; Marriott International; Care”; Acura; Bed”; Gen Xers; Harley-Davidson; North America; Spa; Econo Lodge; Phil Mickelson; Sandals; Super; La Quinta; Motel 6; Expedia; AH&LA; IH&RA; ITSA; New York Avenue; TIA
Contents

Scope and Themes

What you need to know

Definition

Data sources

Sales data
Consumer survey data

Abbreviations and terms

Abbreviations
Terms

Executive Summary

Key points

Hotels struggle to perform in underperforming market
Many drivers of lodging demand have turned sour
Market dominated by six hotel groups
Innovation and advertising
Consumer hotel travel trends

Revenue growth minimal once inflation is factored in

Hotels compete with free and paid accommodations in an environment where market drivers are turning sour

Top hotel groups expanding and innovating

Leading 22 hotels spent $479 million on media

Highlights from the consumer research

Market Size and Forecast

Key points

Revenue growth, after adjusting for inflation, is stagnant

U.S. economic performance will lower occupancy rates and hinder growth in ADR

Luxury brands outperform the rest of the market in RevPAR

Hotel and accommodations sales and forecast through 2013

Figure 5: U.S. hotels and accommodations revenue and forecast, at current prices, 2003-13
Figure 6: U.S. hotels and accommodations revenue and forecast, at inflation-adjusted prices, 2003-13

Competitive Context

Many choose free or inexpensive overnight accommodations

Figure 7: Accommodations on last domestic trip for vacation or personal reasons, February 2007-March 2008

A plethora of new brands

Figure 8: New hotel brands, March 2006-April 2008

Previous experience matters

Figure 9: Importance of having stayed at a hotel before, by age, June-July 2008

Room cost is an important factor in the booking decision

Figure 10: Importance of price in booking accommodations, by age, June-July 2008

Segment Performance

Key points

Hotel/motels account for two thirds of category sales

Revenue from ancillary hotel services (food, beverage, gaming) should slow as occupancy levels decline

Consumers love to gamble

Hotel and accommodation revenue segmentation, by type of hotel, revenue stream

Figure 11: Hotel and accommodation revenue, segmented by type of accommodation, 2006 and 2008
Figure 12: Hotel and accommodation revenue, segmented by revenue stream, 2006 and 2008

Segment Performance—Hotels and Motels

Key points

After steady revenue growth since 2004, times will be tougher ahead

Figure 13: Revenue from hotels & motels, at current prices, 2003-13

Room rentals account for the majority of segment revenue

Figure 14: Hotels & motels revenue, segmented by revenue stream, 2006 and 2008

Segment Performance—Casino Hotels

Key points

The casino hotel is a means to an end

Figure 15: Casino hotel revenue, segmented by revenue stream, 2006 and 2008

Casino hotels looking to attract non-gambling guests

Sales/forecast at casino hotels

Figure 16: Revenue from casino hotels, at current prices, 2003-13

Market Drivers

As goes the economy, so goes the hotel industry

GDP

Figure 17: U.S. GDP 2000-07
Figure 18: U.S. GDP forecast—2007-18

Fuel prices

Figure 19: U.S. Gasoline Prices (all grades), at inflation-adjusted prices, 2003-08

Disposable personal income

Figure 20: Per capita disposable personal income, at current and chained 2000 dollars, 2000-08

Cutbacks in airline capacity decrease hotel demand

Figure 21: Large airports with biggest capacity declines (overall seat reduction) November 2008 vs. November 2007

Travel costs rising

Figure 22: Travel price index* and consumer price index*, 2002-11

U.S. underperforming as an international travel destination

Figure 23: International and overseas* visitors to U.S., 2000-11

Domestic travel is stagnant

Figure 24: U.S. resident travel volume 1997-2011

Leading Companies

Key points

Top 10 hotel groups worldwide

Hotel expansion continued globally in 2008 but at a slower rate than in 2007

A 20% increase in supply planned by the top global hotel groups by 2015

The 10 largest hotel groups worldwide

Figure 25: World Ranking—10 largest hotel groups by number of hotels, 2007 & 2008
Figure 26: World Ranking—10 largest hotel groups by number of rooms, 2007 & 2008

U.S. brand share

Leading U.S. hotel groups added 66,000+ rooms, yet leading brands contracted

Figure 27: Number of rooms and brand share for top 50 hotels in the U.S., 2006 & 2007

Brand Qualities

Starwood Hotels & Resorts—Westin Brand

Holiday Inn

Hampton Inn

Best Western

Innovation and Innovators

Creating new brands and boutique hotels to meet any need

NYLO Hotels

Edition

Element

In-room technology

Hilton’s ‘Sight+Sound’ rooms

Hyatt’s music offering

Rodeway targets the value-conscious senior traveler

Partnering to differentiate a brand or hotel experience

Advertising and Promotion

Key points

Overview

Figure 28: Media expenditures for leading hotel brands, 2006-07

Advertising themes

Theme—Features

Figure 29: Television Spot, Holiday Inn “MBA Lecture—Guest Room Simulator,” June 2008
Figure 30: Television Spot, Residence Inn “Women With Curtain And Apple,” November 2007
Figure 31: Television Spot, Econo Lodge “Princess & Frog,” July 2008
Figure 32: Television Spot, Days Inn “New Look & More Value/Happy Guests,” May 2008

Theme—Locations

Figure 33: Television Spot, Crowne Plaza “The meeting of people with advice for phil,” July 2008
Figure 34: Television Spot, Super 8 “The number you can always count on,” June 2008

Theme—The perfect getaway

Figure 35: Television Spot, Sandals “The time of our life,” June 2008
Figure 36: Television Spot, Wyndham “2 Out Of 5 Americans/4th Night Free Offer,” July 2008
Figure 37: Television Spot, Hampton Hotels “With a Little Help from my friends, 2,” May 2008

Theme—Promotions/Loyalty programs

Figure 38: Television Spot, Comfort Inn “Country Singer Lists Holiday Destinations,” May 2008
Figure 39: Television Spot, Hilton Hotels “No Blackout Dates For Hilton HHonors Members,” July 2008
Figure 40: Television Spot, Sheraton “Rival Fans Getting Along,” January 2008

Usage

Key points

The share of adults who stay in hotels has rebounded since 2001/2002

Figure 41: Incidence of hotel stays, by age, October 2000-March 2008

Most hotel stays are for leisure purposes

Figure 42: Incidence of hotel stays for business or leisure travel, by age, June-July 2008
Figure 43: Incidence of hotel stays for business or leisure travel, by household income, June-July 2008
Figure 44: Incidence of hotel stays for business or leisure travel, by race/Hispanic origin, June-July 2008

Adults spend 5+ nights in domestic hotels; $100K+ households, 6.3 nights

Figure 45: Mean nights spent in hotels, by leisure or business, by key demographics, February 2007-March 2008

Adults who have not stayed in a hotel either do not travel or choose to stay with friends/family

Figure 46: Reasons for not staying in a hotel/motel, by age, June-July 2008
Figure 47: Reasons for not staying in a hotel/motel, by household income, June-July 2008
Figure 48: Reasons for not staying in a hotel/motel, by race/Hispanic origin, June-July 2008

Accommodation Options and Preferences

Key points

Among overnight travelers, paid accommodations and staying with friends and family are the predominant accommodation choices

Figure 49: Accommodations on last domestic trip, February 2007-March 2008

Budget hotels most popular paid accommodation, but price is not the primary driver

Figure 50: Paid accommodation preferences, by household income, June-July 2008

Brand Preferences

Leading hotel brand preferences span economy to ‘upper upscale’ chains

Figure 51: Hotel brands stayed at for any domestic travel (business or leisure), February 2007-March 2008

In the fragmented leisure market, midscale and economy hotels more often selected

Figure 52: Hotel brands stayed at for domestic leisure travel, February 2007-March 2008

The leading business hotels are ‘upper upscale’ brands

Figure 53: Hotel brands stayed at for domestic business travel, February 2007-March 2008

Enrollment in Frequent Guest Programs

Only one in five adults who stay in hotels are loyalty program members

Figure 54: Enrollment in frequent guest programs, by key demographics, February 2007-March 2008

Methods for Finding/Researching Hotels

A previous stay influences the future choice of hotel

Online sites are a significant source of information

Information sources used

Figure 55: Information sources used to find a hotel, by age, June-July 2008

Race/Hispanic origin and hotel research sources

Figure 56: Information sources used to find a hotel, by race/Hispanic origin, June-July 2008

Booking Methods

Leisure travelers book rooms directly with the hotel

Figure 57: Booking methods, by age, June-July 2008

Desired Hotel Amenities

Free parking, flexible check-in/out, and nearby restaurants are the most important amenities for leisure guests

Figure 58: Importance of hotel amenities, by household income, June-July 2008

Asian, Hispanic and black respondents consider more amenities important to their hotel decision than whites

Figure 59: Importance of hotel amenities, by race/Hispanic origin, June-July 2008

Perceptions About Hotels

Most adults view hotels as a base from which to explore nearby attractions

Price is a “main concern” of eight in 10 adults when booking accommodations

Hotels are an important component of the “holiday experience” yet, for many, they just represent a place to sleep

Hotel perceptions by age, income and race/Hispanic origin

Figure 60: Perceptions about hotels, by age, June-July 2008
Figure 61: Perceptions about hotels, by household income, June-July 2008
Figure 62: Perceptions about hotels, by race/Hispanic origin, June-July 2008

Hotel Usage by Non-guests

Two thirds of adults do not visit a hotel to take advantage of its offerings when not visiting as a guest

Figure 63: Hotel usage by non-guests, by age, June-July 2008
Figure 64: Hotel usage by non-guests, by household income, June-July 2008

Appendix: Other Useful Consumer Tables

Types of hotels used by leisure travelers

Figure 80: Types of hotels used by leisure travelers, by age, June-July 2008
Figure 81: Types of hotels used by leisure travelers, by race/Hispanic origin, June-July 2008

For foreign leisure travel, hotels face competition from non-hotel options

Figure 82: Accommodations on last foreign leisure trip, by key demographics, February 2007-March 2008

Foreign travel—leisure v. business

Figure 83: Accommodations on last foreign trip, by business or leisure, February 2007-March 2008

Hotel research and booking

Figure 84: Information sources used to find a hotel, by household income, June-July 2008
Figure 85: Booking methods, by household income, June-July 2008
Figure 86: Booking methods, by race/Hispanic origin, June-July 2008

Unimportant hotel amenities, by age, income and race/Hispanic origin

Figure 87: Less important hotel amenities, by age, June-July 2008
Figure 88: Less important hotel amenities, by household income, June-July 2008
Figure 89: Less important hotel amenities, by race/Hispanic origin, June-July 2008

Hotel usage by non-guests

Figure 90: Hotel amenity usage by non-guests, by race/Hispanic origin, June-July 2008

Appendix: Trade Associations
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