Lodging Industry Begins 2007 on a Weak Note, but Luxury Vacation Rentals Should Do Well
Jan. 21, 2007. The Weekly Lodging Report of Smith Travel Research indicated that the lodging industry continues to experience the weak occupancy rates that were evident in the last several weeks of 2006. For the week ending Jan. 13, 2007, occupancy was down 3.7% over the same week a year ago.
While an increase in room rates of 7.3% still produced greater revenue, this is not a positive sign. As referenced in our Jan. 16 Vacation Rentals Blog, Demand for leisure travel services will continue to outpace that for business travel services, as more business travelers attempt to use the latest technology as a surrogate for business travel whenever possible. Moreover, family travel (adults with children) will continue to grow at a faster rate than all other forms of leisure travel.
While this means a weaker business travel market, there is no sign that there is a decline in vacation travel, especially travel to luxury destinations and resort areas. Luxury vacation rentals owners that meet the standards and follow the tips and suggestions of VacationRental.org should do very well in 2007.
