Recovery Expected to Slow
According to Kalibri Labs’ latest “Mind the Gap” report, recovery is projected to slow down for the remainder of the year. This can be attributed to a multitude of reasons, such as sluggish group and business travel demand, along with weakening leisure travel demand due to the spread of the Covid-19 delta variant.
Both airline bookings and hotel demand dropped off in July compared with June, and Kalibri expects this trend to continue as schools return to in-classroom learning. Although demand and ADR trends the third and fourth quarters historically have been characterized by strong group and business travel, most large groups won’t return in a meaningful way until 2022. Furthermore, the resurgence of Covid-19 cases is likely to delay many companies’ plans to return employees to the office.
And while weekend room demand has been a driving force in the lodging industry’s leisure travel recovery, this trend has dipped from June to July. This was the first time since May 2020 that weekend room night demand did not outperform shoulder days (Thursday and Sunday) or weekdays.
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