The Year That Was – Hotel and Travel Industry in 2009

The year 2009 was a year of ups and downs for hotels in particular and the global travel industry in general. There were many events and developments that helped shape the outlook of the hotel industry over the past 12 months. Let us take a look back at 2009 and identify these developments.

Who can forget the global H1N1 virus scare that rocked the world? Some surveys suggest that many travelers will be more concerned about germs and health-related issues in general, thanks to the outbreak of the H1N1 virus. This has thankfully led to more stringent measures and health awareness on the part of the establishments.

The global recession was clearly still in effect the whole year round, and there will even be some repercussions heading into 2010. There are still some significant properties and establishments being shopped and sold. However, it should be noted that, while some companies have been selling their hotels, there are those that are utilizing the sale to expand their core properties. That is a positive sign, showing growth and a willingness to expand despite the continued pinch given by the recession.

In 2009, eco-tourism and eco-friendly destinations started taking the spotlight, as both the travelers and the various establishments have become more and more environmentally conscious. Destinations such as Sweden, Norway, and Switzerland are the top dogs when it comes to eco-friendly places to visit. The hotels in such countries also benefit tremendously because of the influx of travelers, and a lot of them have already adopted an eco-friendly mentality to go with the times.

Of course, there are also many hotel groups-from smaller-scale local establishments to big chains of luxury hotels-who have re-evaluated their business approach and have made changes to their various investment strategies. This is a wise move, still in line with managing the costs and income in an economic landscape that still is not as stable as desired.

Another trend in 2009 was an increased patronage for online travel services, such as booking sites and aggregators that really are a big help to travelers. Still, traditional booking occupies a significant chunk of the pie, even with online services gaining some headway over the past year.

Some establishments, from hotels to apartments to luxury spas, have shown a diminishing level of performance in the middle of the year. The good thing is that some of them have been able to recover quite nicely and gain back some lost ground-and some lost ratings-to get back on track.

There are indications that leisure spending on the side of the travelers will go up in 2010, and that is a definite plus for the hotel industry. More people willing to spend more money translate to more business opportunities for hotels and other members of the hospitality industry.

All in all, it was another year and another step to recovery in 2009. Things are shaping up quite nicely for 2010, and hopefully, hotels and their respective managements learned a lot in the past year and start to apply them in order to flip the script this coming year.

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