SAN DIEGO TOURISM AUTHORITY
TOURISM INDUSTRY PERFORMANCE REPORT
FEBRUARY 2013
Keeping the local hospitality and tourism industry informed with the latest local, state and national market trends
and news.
MONTHLY HIGHLIGHTS
IN THIS EDITION
San Diego
Industry Performance
Hotel Performance
TOT and TMD Collections
New Lodging Supply
Travel Forecast
SDCC Attendance
San Diego


Competitive Markets
Transient vs. Group
Market Share

State and National
California Trends & Outlook
National Trends & Outlook
Industry Research and News



Despite a slowdown in December, the visitor industry finished the year strong with
a record 32.3 million visitors and total spending of just under $8 billion. This represented a 3.6 percent increase in visitor volume and a 6.6 percent increase in visitor
spending.
Overnight visitor volume increased 2.4 percent for the year to a record 16.1 million
overnight visitors. Visitors with hotel accommodations led the growth at 5.2 percent, to a record 8.7 million visitors. However, overnight in-home guest volume
again struggled, experiencing 8 months of declines in 2012 and ending the year
down 1.1 percent.
Day visitation also had a good year, growing 4.8 percent to reach 16.1 million. This
was in line with Mexican day visitor volume, which grew 6.5 percent. Combined
gate attendance at major attractions ended the year with a 3.8 percent increase to
more than 14.3 million people, while the arts and museums attendance increased
8.1 percent.
San Diego air passenger arrival volume had its ups and downs in 2012 but ended
the year up 1.9 percent over 2011.
County hotels wrapped the year filling 70.7 percent of its available rooms in 2012,
up 2.9 percent. ADR increased 4 percent to finish the year at $130.02. The gains in
occupancy and ADR led to a respectable 7.4 percent increase in RevPAR to end the
year at $92.93. March provided the high and December the low with regards to the
growth rates for occupancy and RevPAR.
All TMD sub-regions ended the year up as well. RevPAR growth ranged from 3.4
percent to 10.1 percent, with UTC and La Jolla Coastal areas achieving the highest
growth, while Pt. Loma/Airport area achieved the least at 3.4 percent.
California / United States
Contact:
Miriam Perkins
Planning and Research, SDTA
619-557-2874
mperkins@sandiego.org
www.sandiego/research

According to Visit California, Travel in California continues to perform well, with
hotel room demand at a record high and average room rates recovering to near
pre-recession levels.

According to Tourism Economics, regional economies in the US will evolve at different paces during 2013. The main regional force behind the economy in 2013 will be
the western US, where the majority of San Diego’s key source markets are situated.

Consumer confidence is slowly on the mend. The Conference Board's Consumer
Confidence Index, which had increased in September, improved again in October.
February 2013
SAN DIEGO VISITOR INDUSTRY UPDATE—SOURCE: VISITOR ACTIVITY MODEL/VISITOR PROFILE STUDY, CIC RESEARCH, INC.
The San Diego visitor industry experienced a very sluggish month of December due in part to inclement weather. Visitor volume
posted a decrease of nearly 4 percent compared to December of the prior year. Total visitor volume was a little over 2.5 million
for the month. Total visitor spending also declined almost 5 percent in December to about $618 million.
Despite a slowdown in December, the visitor industry finished the year strong with a record 32.3 million visitors and total spending of almost $8 billion. This represented a 3.6 percent increase in visitor volume and a 6.6 percent increase in visitor spending. Overnight visitor volume increased 2.4 percent for the year to a record 16.1 million overnight visitors. Visitors with hotel
accommodations led the growth at 5.2 percent, to a record 8.7 million visitors. However, overnight in-home guest volume again
struggled, experiencing 8 months of declines in 2012 and ending the year down 1.1 percent. Day visitation also had a good year,
growing 4.8 percent to reach 16.1 million. This was in line with Mexican day visitor volume, which grew 6.5 percent compared to
the prior year. Combined gate attendance at major attractions grew 3.8 percent to more than 14.3 million people, while the arts
and museums attendance increased 8.1 percent. San Diego air passenger arrival volume had its ups and downs in 2012 but ended
the year up 1.9 percent .
2012 saw increases in 9 of the 12 months, as overnight visitor volume reached more than 16.1 million. This was an increase of 4.2
percent or 376,000 more overnight visitors. Day visitor volume on the other hand, saw increases in 10 of the 12 months, with an
increase of 4.8 percent or 743,000 more day visitors. These positive results are mostly due to the strong performance in terms of
the hotel sector and a reasonable performance after long periods of decline in the day visitation from Mexico.
February 2013 2
SAN DIEGO MARKET UPDATE—SOURCE: SMITH TRAVEL RESEARCH
The hotel sector also felt the effects of bad weather in December. Average occupancy in the County decreased 4.9 percent and
ADR decreased 7.5 percent. As a result, RevPAR decreased 12 percent. The City performed slightly worse than the County overall. RevPAR YOY growth was down 14.5 percent in the City.
County hotels wrapped the year filling 70.7 percent of its available rooms in 2012 up 2.9 percent. ADR increased 4 percent to
finish the year at $130.02. The gains in occupancy and ADR led to a respectable 7.4 percent increase in RevPAR to end the year
at $92.93. March provided the high and December the low with regards to the growth rates for occupancy and RevPAR.
In 2012, all TMD sub-regions ended the year in positive growth territory. RevPAR growth ranged from 3.4 percent to 10.1 percent, with UTC and La Jolla Coastal areas achieving the highest growth, while Pt. Loma/Airport area achieved the least at 3.4 percent.
Within other sub-markets, RevPAR growth ranged from 9.6 percent growth in Del Mar/Oceanside to 7.4 percent growth in San
Diego NE/Escondido.
The Convention Center hosted 5,135 fewer attendees compared to 2011.
February 2013 3
TOT and TMD Collections—SOURCE: CITY OF SAN DIEGO, TREASURERS DEPARTMENT
Millions
Transient Occupancy Tax
Actuals
TOT FY 20 13
$25
TOT City of SD FY20 13 Budget
$20
$15
$10
$5
$0
JULY
AUGUST
SEPTEMBER
OCTOBER
NOVEMBER
DECEMBER
JANUARY
FEBRUARY
MARCH
APRIL
MAY
JUNE
Note: The monthly “By Activity Period” figures change on a monthly basis as hotels remit payment and are credited to their account for the specific period.
Through December of Fiscal Year 2013, nearly $80.6 million in TOT and nearly $13.9 million in TMD assessments were collected.
Collections were up 5.4 percent compared to same time last year and up 0.6 percent to budget.
Additions to the San Diego County Lodging Inventory—Source: SDCVB Hotel Database
Potential Hotels Rating Scale: (5) Hotel i s under cons tructi on. (4) Fi na nci ng for hotel i s s ecured. (3) Ci ty a pproved the project
a nd a l l permi ts . (2) Archi tectura l des i gn/renderi ngs , envi ronmenta l documents prepa red a nd rea dy to obta i n permi ts a nd
a pprova l from ci ty. (1) Conceptua l i dea onl y.
Property Name
Address
City
Potential
Opening Date
Hotel
Rooms
Potential
Rating
Vi eja s Ca s i no a nd Res ort
5005 Wi l l ow Roa d
Al pi ne
Ma rch-13
128
5
Legol a nd Hotel
One Legol a nd Dri ve
Ca rl s ba d
Apri l -13
250
5
Pi er South (formerl y s i te of Sea coa s t Inn)
800 Sea coa s t Dri ve
Imperi a l Bea ch
June-13
78
5
Hol i da y Inn Sa n Di ego Ba ys i de
4875 North Ha rbor Dri ve
Sa n Di ego
Ma rri ott Spri nghi l l Sui tes
North Myers St. & Mi s s i on Ave. Ocea ns i de
Va l l ey Center
Jul y-13
54
5
December-13
150
5
2013 Total
660
Apri l -14
403
5
Jul y-14
364
4
Ha rra h's Ri ncon Ca s i no & Res ort
FC Acqui s i ti on Co. 2-Hotel Compl ex.
(Formerl y Fa t Ci ty Res ta ura nt Si te)
777 Ha rra h's Ri ncon Wa y
Hol i da y Inn - Mi s s i on Va l l ey
625 Hotel Ci rcl e So.
Sa n Di ego
Jul y-14
87
4
Stone Brewi ng Compa ny Bouti que Hotel
Ci tra ca do Pa rkwa y
Es condi do
December-14
2014 Total
50
904
4
Pa ci fi c Hi ghwa y & Ha wthorn St. Sa n Di ego
Hotel Development News
Pier South on track to open by summer | UTSanDiego.com
Luxury boutique hotel Pier South is on target to open in Imperial Beach by summer, and it might bring with it the latest member in the Cohn Restaurant Group.
San Diego getting a new waterfront hotel - San Diego's first waterfront hotel in years is expected to rise on Harbor Drive by
2015, thanks to the California Coastal Commission's unanimous approval Wednesday of the $120 million project.
LEGOLAND to Hire 250 People for New Hotel - LEGOLAND California is in the process of hiring 250 employees to staff its hotel,
which is slated to open in April, park General Manager Peter Ronchetti announced Thursday.
Pebblebrook Hotel Trust buys San Diego hotel - Bethesda-based Pebblebrook Hotel Trust has acquired the Embassy Suites San
Diego Bay for $112.5 million, its second hotel property in San Diego and its ninth hotel in California. Jeff Clabaugh: Broadcast/
Web Reporter- Washington Business Journal
3 SD hotels earn top AAA rankings - Three San Diego County hotels have been deemed the best of the best by AAA. The Grand
Del Mar in Carmel Valley, the Lodge at Torrey Pines and the Park Hyatt Aviara in Carlsbad.
Majestic Hotel del Coronado near San Diego turns 125 - The Hotel del Coronado, a sprawling Victorian-style resort with red
turrets across a bridge from San Diego, was featured in the 1959 Tony Curtis/Jack Lemmon/Marilyn Monroe comedy Some Like
It Hot.
Where were last year's biggest hotel purchases? - The cost per room — $640,000 — was the most paid last year for California
hotels and was the second-highest price ever paid in San Diego. Nationally, the L'Auberge transaction was just behind three
New York City hotel sales and the sale of a hotel and casino in St. Louis.
February 2013 4
SAN DIEGO QUARTERLY TRAVEL FORECAST (AS OF DECEMBER 2012) - SOURCE: TOURISM ECONOMICS

Visits to San Diego accelerated 5.0% in the third quarter of 2012, reaching 10.5 million visitors and setting a new record for
third quarter visitation. Including an upward revision for the fourth quarter, full year visitor growth is now expected to average 3.6% in 2012, setting a new peak in annual visitation to San Diego.

Visitor expenditures in San Diego jumped 8.3% in 2012 Q3 as average expenditure per day increased across all segments.
Visitor spending is expected to surpass the 2008 peak in nominal terms in 2012.

The US economic outlook for 2013, assuming some solution to the fiscal cliff, is for a gradual recovery in growth. Regional
economies in the US will evolve at different paces during 2013. The main regional force behind the economy in 2013 will be
the western US, where the majority of San Diego’s key source markets are situated.

Visits to San Diego are expected to slow to 2.1% in 2013. The first half of the year is expected to be markedly slower than the
second half. While this rate is slower in comparison to the last two years of recovery, visits to San Diego are expected to outperform the US (1.1%) and rival the pace of California (2.2%).

Longer term, visitor growth is forecast to peak above 3% in 2014 before steadying above 2.5% in 2015 and 2016. Spending
will accelerate through 2015 as overnight visitation gathers more strength and the hospitality industry gains pricing power.

Hotel room demand is forecast to grow 1.7% in 2013. While seemingly slow to recent experience, room demand growth in
San Diego is expected to outperform the US average (1.2%) for the year. Based on forecasts Tourism Economics provides to
Smith Travel Research, San Diego room demand is expected to grow faster than room demand in San Francisco and Anaheim, but slower than Los Angeles.
San Diego Tourism Summary Outlook
Year-to-Year % Growth
2013 YOY % Growth
Q1
Q2
Q3
Q4
2012 2013 2014 2015
Visits
1.0%
1.6%
2.6%
2.9%
3.6% 2.1% 3.1% 2.7%
Day
1.2%
2.9%
3.7%
4.4%
4.5% 3.2% 4.1% 3.0%
Overnight
0.9%
0.3%
1.3%
1.7%
2.8% 1.1% 2.1% 2.4%
Expenditure
Hotel Sector
3.1%
2.7%
4.5%
4.5%
6.9% 3.8% 5.7% 5.9%
Room Supply
0.5%
0.5%
0.7%
0.9%
0.1% 0.6% 1.0% 1.5%
Room Demand
2.1%
0.6%
2.4%
1.6%
3.6% 1.7% 2.4% 2.8%
Occupancy
4.3%
4.8%
2.9%
1.8%
3.5% 1.0% 1.4% 1.3%
ADR
3.2%
1.0%
3.7%
4.6%
4.5% 3.1% 5.2% 4.5%
RevPAR
4.9%
1.1%
5.4%
5.3%
8.2% 4.2% 6.7% 5.8%
Occupancy and ADR (12mma)
San Diego: Overnight Visits
% growth y-o-y
15%
Forecast
10%
ADR
10%
Occupancy
rate (rhs)
Hotel Room Supply & Demand
Forecast
5%
70%
5%
0%
0%
Overnight
visits
-5%
Average GDP growth
by origin markets
Forecast
% growth
10%
74%
72%
5%
70%
0%
68%
65%
-5%
-10%
-15%
75%
-10%
ADR
(year-to-year
% growth)
66%
-5%
60%
Room Supply
-10%
64%
Room Demand
62%
Occupancy rate, 12mma (rhs)
-20%
2002
2004
2006
2008
2010
2012
2014
Source : Tourism Economics/CIC Research
-15%
2006 2007 2008 2009 2010 2011 2012 2013 2014
Source : Tourism Economics / STR
55%
-15%
60%
2006 2007 2008 2009 2010 2011 2012 2013 2014
Source : Tourism Economics / STR
Read more: Quarterly Industry Forecast
February 2013 5
SAN DIEGO CONVENTION CENTER CORPORATION ATTENDANCE FORECAST
San Diego Convention Center Corporation
Primary and Short Term Convention Attendance
Thousands
2012
170
2013
157
150
145
130
104
110
90
72
70
50
30 35
34
44
30
47
46
33
31
17
28
24
34
17
22
30 34
43
28
10 8
10
-10
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Summary
2012
Conventions
67
YOY Difference
-7
Estimated Attendance 561,523
YOY Difference
(5,135)
2013
60
-7
509,431
(52,092)
Sources:
Source of past months’ attendance is SDCCC actual reported attendance post event.
Source of attendance of future months is the estimated attendance provided by the meeting planners to SDCCC.
February 2013 6
COMPETITIVE MARKETS - HOTEL PERFORMANCE—SOURCE: SMITH TRAVEL RESEARCH
Transient Segment (Luxury/Upper Upscale Only—represents about 40% of inventory, remaining 60% mostly transient rooms are not included )
In 2012, all six competitive markets saw growth in transient RevPAR of between 0.3 and 12.2 percent, with Phoenix at just above
flat at 0.3 percent and San Francisco on the high end at 12.2 percent. San Diego ended the year with minimal growth in transient
occupancy (0.5%), and 4.8 percent growth in the average daily rate.
Group Segment (Luxury/Upper Upscale Only - represents about 40% of inventory, but includes most group rooms)
In the group segment, Los Angeles outperformed the rest of the markets in 2012 achieving 12.9 percent growth in RevPAR through
both occupancy and rate growth. San Diego’s RevPAR of 8 percent was second to Los Angeles, and mainly driven by occupancy
growth as the group rate grew the least at just 1.7 percent. San Francisco’s RevPAR growth still ended the year up due to its continued push of the average daily rate. After a few years of very strong growth in the group market, Seattle lost some steam in 2012
with flat occupancy and 2.5 percent rate growth.
February 2013 7
COMPETITIVE MARKETS - HOTEL PERFORMANCE—SOURCE: SMITH TRAVEL RESEARCH
Western Region Markets Comparison
Calendar Year 2011 vs. 2012 through December
% change
Room Nights Sold
RNS
Market Share
Market Region
Anaheim
Los Angeles
Phoenix
San Diego
San Francisco
Seattle
2011
13,857,049
25,592,215
13,024,235
14,537,232
14,766,295
10,178,871
2012
14,335,570
26,620,404
13,096,938
14,969,633
15,007,374
10,582,401
Total Room Nights Sold
CY 2011
CY 2012
YOY
3.5%
4.0%
0.6%
3.0%
1.6%
4.0%
2011
15.07%
27.83%
14.16%
15.81%
16.06%
11.07%
Share
Change
Calendar
2012 Year 2012
15.15%
0.08%
28.14%
0.31%
13.84%
-0.32%
15.82%
0.01%
15.86%
-0.20%
11.19%
0.12%
2011 vs 2012
RNS
% Change
91,955,897 94,612,320 2,656,423
2.9%
Fiscal Year 2012 vs. 2013 through December
% change
Room Nights Sold
RNS
Market Share
Fiscal Year Fiscal Year
2012
2013
7,078,415 7,346,534
13,055,447 13,498,753
5,840,811 5,872,089
7,480,621 7,596,015
7,733,266 7,801,926
5,372,671 5,590,430
YOY
3.8%
3.4%
0.5%
1.5%
0.9%
4.1%
Total Room Nights Sold
FY 2012
FY 2013
FY 2013 vs 2012
RNS
% Change
46,561,231 47,705,747 1,144,516
Share
Change
Fiscal Year Fiscal Year Fiscal Year
2012
2013
2013
15.20%
15.40%
0.20%
28.04%
28.30%
0.26%
12.54%
12.31%
-0.23%
16.07%
15.92%
-0.15%
16.61%
16.35%
-0.26%
11.54%
11.72%
0.18%
2.5%
The six western markets sold 2,656,423 more room nights in 2012, a 3.0 percent increase over 2011. In 2012, Los Angeles outperformed the competitive set in room night demand with growth of 4.0 percent, taking .31 percent more share than last year. Seattle and Anaheim also increased share .08 percent and .12 percent respectively, while San Diego ended the year just in positive
growth territory (up .01%). In the last half of the year, Anaheim, Phoenix and Seattle gained momentum and took share from the
other markets.
Competitive Market News

Southern California - HOT for hotel development as values exceed cost
Los Angeles
 Los Angeles Tourism Breaks Record in 2012 with 41.4 Million Visitors
Orange County
 Big conventions mean big bucks for Orange County

Orange County targets Chinese tourists
San Francisco
 San Francisco Travel surpasses 500,000 Facebook “Likes”
Seattle
 Seattle's Convention and Visitors Bureau changes name to 'Visit Seattle'
Arizona
 Cambria Suites expands into Phoenix with a four story – 121 room hotel

Scottsdale hotels growing revenue, still way behind pre-recession
February 2013 8
CALIFORNIA TRENDS AND OUTLOOK— SOURCE: VISIT CALIFORNIA
According to Visit California, travel indicators point to largely positive trending for the industry through year's end and into 2013.
The occupancy rate for the state lodging industry was 55.7 percent in December and 68.8 percent for the year on whole, up 3.1
percent and 3.6 percent respectively year over year. Average room rates in December were $112.73, up 4.0 percent yr/yr, and year
-end rates averaged $123.23, up 5.8 percent from 2011.
CA Occupancy Yr/Yr Chg: Last 12 Months
CA ADR Yr/Yr Chg: Last 12 Month
Source: Smith Travel Research
Visit California also reported that California’s 10 largest airports reported combined growth of 8 percent for domestic traffic and 4
percent for international traffic in November, and YTD have had 4.7 percent growth in domestic passengers and 4.2 percent growth
in international passengers. The news for overseas port of entry arrivals- foreign travelers going through customs at California airports- is less impressive with flat growth through August. But overseas travelers claiming California as their first intended address
in the US climbed 3.8 percent for the same period, suggesting that actual travel to California by international travelers is growing.
Source: Individual CA airports
Source: US Dept. of Commerce
Source: Strategic Marketing & Research, Inc., April 2011
California Travel Forecast
According to the October, 2012 California Travel Forecast by Tourism Economics, 2013 should see continued growth in travel but
at a slowing pace. Tourism Economics forecasts that California visitation will grow by 2.2 percent in 2013 after 2.5 percent growth
in 2012. Domestic leisure travel is forecast to grow by 2 percent while international leisure travel is forecast to grow by 4.5 percent.
February 2013 9
NATIONAL TRENDS AND OUTLOOK— SOURCE: U.S. TRAVEL ASSOCIATION
According to Dr. Suzanne Cook, Senior Advisor to the U.S. Travel Association, the United States economy strengthened in 2012, growing 2.2 percent after a 1.8 increase the
year before.
Labor
There is good news on the job front. Employers added 157,000 jobs in January, and the
unemployment rate was essentially unchanged at 7.9 percent, according to the U.S.
Department of Labor.
Consumer Confidence and Spending
Consumer spending, which accounts for about 70 percent of the economy, expanded
at a 2.2 percent annual rate last quarter, up from 1.6 percent the previous quarter,
according to the BEA.
Leisure Travel
Most sectors of the travel industry are increasingly optimistic about 2013, but problems remain for some. U.S. Travel's latest forecast calls for a 1.2 percent increase in
domestic leisure travel in 2013 and another 1.7 percent increase in 2014.
Business Travel Travel Leaders Group reports that most of its business-focused travel
agents are forecasting that clients will be traveling as much or more than last year; less
than 10 percent of those polled say their clients will be traveling less.
Meetings Meeting Professionals International (MPI) suggests possible trouble ahead
for the meetings sector. Its latest MPI Business Barometer shows that 18 percent of
meeting planners have negative feelings about business conditions, up from 14 percent in October.
Air Travel
Airline travel predictions for 2013 are mixed. According to the International Air
Transport Association (IATA), 2012 enjoyed a 5.3 percent year-over-year increase in
passenger demand, down slightly on 2011 growth of 5.9 percent, but above the 20year average (5%).
Lodging Industry
The U.S. hotel industry is entering its fourth year of recovery. Soaring demand and
record room nights sales on a nearly monthly basis has boosted operators’ confidence
and prompted rate increases in earnest.
International Travel
Performance remains positive in the international travel segment. According to the
World Tourism Organization's (UNWTO) latest World Tourism Barometer, international
tourist arrivals worldwide grew 4.0 percent in 2012 to reach 1.035 billion, surpassing
one billion for the first time and setting a new record.
Exports Travel exports reached an all-time high last year. The trade surplus in travel
also rose to a record of $50 billion in 2012, up from $43 billion.
Policy
Travel companies are lining up in support of provisions in the White House's immigration proposal that aims to further streamline visa processing, boost travel and bolster
the slowly recovering economy.
February 2013 10
TRAVEL NEWS
San Diego International Airport
The Green Build Update: Construction on The Green Build continues to make headway -- and remains on time and within budget,
making tracks toward a summer 2013 opening.

SeaPort Airlines announces new service between Imperial Valley and San Diego
North Embarcadero Visionary Plan Phase I A portion of West Broadway will be temporarily closed to vehicular traffic beginning
January 23, 2013 until the summer 2013 as the Port of San Diego continues a beautification and public access project for the
North Embarcadero.
International Travel To the U.S.
The U.S. Department of Commerce announced that 7.1 million international visitors traveled to the United States in August 2012,
a six percent increase over August 2011. August 2012 registered the 17th straight month of increases in total U.S. visits.
international visitors spent an estimated $13.7 billion on travel to, and tourism-related activities within, the United States during
the month of July - $350 million (3 percent) more than was spent in July 2011.
International Tourism to Continue Robust Growth in 2013
International tourist arrivals grew by 4% in 2012 to reach 1.035 billion, according to the latest UNWTO World Tourism Barometer.
Emerging economies (+4.1%) regained the lead over advanced economies (+3.6%), with Asia and the Pacific showing the strongest
results. Growth is expected to continue in 2013 only slightly below the 2012 level (+3% to +4%) and in line with UNWTO long term
forecast.
U.S. Travel
PwC US forecasts stronger RevPAR recovery
Reflecting stronger lodging demand and economic activity that exhibits less retrenchment than expected, an updated lodging forecast released by PwC US anticipates stronger RevPAR recovery in 2013, compared to the previous outlook.
Expedia reports record room nights growth, expects competitive intensity to increase
Expedia Inc. released its fourth-quarter results today and recorded record room-night-growth at 33% year over year. But there were
some negative rumblings in the background as the company revealed it could owe the state of Hawaii up to $170 million if a tax
ruling doesn’t ultimately go its way.
In travel, we’re all boomers now
From new hotel Web sites to shorter cruises to smaller tours, the travel industry is redoubling its efforts this year to win the hearts
and wallets of people between the ages of 49 and 67, writes The New York Times.
Four-year boom expected for the US hotel industry
The U.S. hotel industry is booming, more so than anywhere else in the world, and many in the industry say they expect the good
times to keep rolling for a few more years until supply catches up with demand.
How marketing in the travel industry will change in 2013
With Wikipedia shaking up online travel with WikiVoyage, things are already changing in this essential industry at the start of 2013.
As travel becomes more and more accessible and more competitive, how marketing in this space has to become more savvy and
customer centric.
Hotel Demand Outlook for 2013 Remains Positive According to TravelClick
Hotels continue to see a steady increase in occupancy and revenue performance, according to data from the January 2013 TravelClick North American Hospitality Review (NAHR). When looking at Q1 2013 through Q4 2013, the current outlook is for moderate
growth, with continued improvement in average daily rate (ADR) being the key driver.
Fly Guy: 2013 Air Travel Predictions - USATODAY
Anyone who's been flying in recent years knows there's one trend that continues unabated: Fliers will face more -- and higher -fees in the coming year. But will the trajectory of fewer airlines, higher fares and crowded planes continue?
February 2013 11
TRAVEL NEWS CONTINUE…
U.S. travel agents sold more airline tickets in 2012 ARC, the financial settlement link between airlines and travel sellers, reported
the consolidated dollar value of airline tickets sold by U.S.-based travel agencies increased 2.93 percent year-over-year in 2012
compared to 2011, and 9.22 percent compared to 2010.
Travel Employment Rebounds In January David Huether, senior vice president of economics and research at the U.S. Travel Association, provides analysis on the Labor Department report on January 2013 employment numbers.
TRANSIENT
Survey: 85% of travelers repeat vacation destinations According to a new Cheapflights.com poll of 1,053 Americans, 85% of those
surveyed are inclined to vacation somewhere they've already visited, with "great weather" and "good prices" tied for top reasons
to return.
Luxury hotels: Affluent millennials target audience of the future as baby boomers are moving out The up-and-coming luxury consumer responds to different marketing strategies than the baby boomer and older luxury consumer. For example, when marketing
a hotel chain to a younger demographic, brand should look to incorporate entertainment into the hotel experience.
GROUP
U.S. Meetings Industry Has Recovered from the Corporate Travel Cutbacks of the 2008 Recession But meetings will never be the
same, according to a new study by The ACTIVE Network, Inc.
Meeting Professionals International Releases December Business Barometer Results Fiscal Cliff Apprehension Kicks Starts New
Year.
Technology changing the face of business travel According to a new Amadeus report, two thirds of travelers are now able to book
their business travel through an online booking tool. But only a third of travelers are able to book travel on a mobile or tablet device.
GDS corporate booking volume back on track According to new Pegasus data, December closed 2012 on a positive note overall for
both business, with future hotel stays suggesting plenty of potential. Corporate booking volume through the GDS channel is back
on track worldwide, while rates continue to push ahead of 2011.
Annual incentive travel trends survey The top findings from this year’s survey by the Incentive Research Foundation show little
change from last year, in part due to the negative economic picture painted in late 2012. The overall message from incentive travel
planners seems to be: “Hold steady.”
HRG: Corporate hotel rates increase in most major cities In North America, hotels approached negotiation season with a very bullish attitude, leading to high rate rises, according to HRG. Hotels are also paying more attention to cancellation deadlines, which is
placing a further squeeze on rates.
Meeting trends for 2013, according Benchmark Hospitality Meeting demand is improving at an encouraging pace to start the New
Year, according to Benchmark Hotels & Resorts. With increased demand, group rates are advancing commensurately, depending
on the location and the market.
Hoteliers combat shrinking meetings trend Booking windows are shrinking, which requires hotel staffs to be faster on their feet.
As the economy inches back, meeting planners reportedly are aiming for shorter and smaller meetings, and many hoteliers said
they are either adapting or developing strategies to combat the losses in revenue.
Group segmentation data mirrors meeting trends Group demand has not recovered at the pace of transient demand. Group demand decreased 3.6% from January 2012 to the year’s end. Group business has become less concentrated in the top 25 markets.
Convention center expansions drive demand In a recent JLL study that studied 15 markets, all hotels experienced an increase in
revenue over a three- to five-year period after a convention center expansion.
AmEx forecast outlines global meeting trends Hotels in Asia are expected to see the strongest growth in both meetings activity
and spending, according to the American Express Meetings & Events “2013 Meetings Forecast.” North American meetings activity
and spending, however, will remain relatively flat, according to Issa Jouaneh, VP and GM of American Express Meetings & Events.
Meetings Industry Brief An overview of the meetings and events industry shows growing optimism within the incentives sector as
we move into 2013.
February 2013 12