Anyone getting anything in their crystal balls for the summer?
We're trying to get a read on how demand is shaping up for U.S. hotels over the next couple of months.
To help us gauge the state of summer demand, we're running a limited series of interviews through the Hotel News Now podcast network. We'll be speaking with hotel general managers across the U.S. to find out how business on the books is pacing and how demand actually plays out as we progress over the summer months.
We published our first interview yesterday. I spoke with Kevin Ellis, general manager of the Hyatt Regency Monterey Hotel and Spa on Del Monte Golf Course for Davidson Hospitality Group about how his guest mix is skewing more transient due to the market's summer event calendar and pulling back of nearby tech markets, leading to less group business.
As I look ahead to my own summer plans, I know my family is fortunate in that we can still afford to travel. We're taking a long weekend to visit a nearby museum and minor league baseball team. We had considered another trip in the spring to Oakland before the Athletics move, but with some friends' destination wedding in the fall, we had to pass on that one.
Other families are having to make similar decisions. For some, overnight travel will be out of the question. For others, they'll have to make choices, picking which trip, or trips, they can afford and see the value in the overall price. The wealthy, of course, are the exception as they will still be able to do what they want.
As we look at the current factors at play heading into June, we know that the U.S. economy pulled back in the first quarter of the year because consumers spent less than previous quarters. The New York Times reports the U.S. Department of Commerce found the gross domestic product grew at a 1.3% annual rate, down from 3.4% in the last quarter of 2023.
The Commerce Department reported that consumer spending grew at a 2% annual rate, down from 3.3% at the end of last year.
At the same time, we see that consumer confidence in the U.S. rose in May for the first time in three months. The Associated Press reports the Conference Board's latest finding that its consumer confidence index reached 102 in May, up from 97.5 in April. Respondents' short-term expectations for income, business and the job market also grew, climbing to 74.6 from 68.8.
The AP also reported that inflation pressures are pushing a potential cut in interest rates further back in the year — if it'll even happen at all.
There are so many ups and downs to keep track of, and those three factors aren't even the entire picture that hoteliers have to scry.
As journalists, our general plan is to ask questions of knowledgeable people to provide answers to our readers. In situations like this, we have the same questions as everyone else. We can only wait for time to show us the answers.
You can reach me at bwroten@hotelnewsnow.com as well as LinkedIn.
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