Hotel Room Demand May Soon Exceed Supply

bottom_blob-1

According to the data that Intercontinental Hotels chief executive Keith Barr has seen, travel and tourism will begin to bounce back by the second half of this year. While this news is extremely promising, Barr reveals his concerns in a recent interview with MarketWatch.

“If a market is open for travel we are seeing surges in leisure demand,” he says. “Talking to airline CEOs, and seeing our industry data, you’re seeing rapid demand for luxury resorts, for normal resorts, hotels and leisure destinations too. It will clearly be a leisure-led recovery underpinned by essential business travel…I think leisure demand could outstrip supply in some markets in the short to medium term.”

Barr was prompted to warn the industry about capacity constraints due to the recently opened Six Senses resort running at 80% occupancy at record average rates. The continued rollout of the COVID-19 vaccine is believed to be behind this surge in bookings at hotels, airlines and tour operators.

Want market insights in your inbox?

Sign up below to receive H2R's free monthly e-mails summarizing the latest trends.

We respect your privacy.