This is a very important news item. It appears that luxury is no longer a sin and the business traveler can stay at a luxury hotel without violating corporate travel rules or the laws of nature. Yes, price is important. We have noted in this Blog, as have other industry sources, that while occupancy is advancing upward, pricing (measured as an ADR or Average Daily Rate, ultimately translating to RevPAR, or Revenue Per Available Room) is lagging. This means business travelers can enjoy luxury amenities for less money. So, why not? Indeed, why not, and the data being collected is validating the word on the street. The recently released iPerceptions, Inc. Hospitality and Tourism Industry Report for first quarter 2011 basically shows the luxury sector leading the recovery for hospitality. Business travel is up, and luxury stays of the business traveler is also up.
To make the hospitality industry really feel better, monthly data released from Pegasus Solutions in The Pegasus View showed rate gains in the leisure sector as well! A gain of almost 5% in realized rates from the leisure traveler in the month of May is very promising.