2022 State of the Industry Report
January 24, 2022
Summary
The 2022 State of the Hotel Industry report, in collaboration with Accenture, highlights a cautiously optimistic recovery trajectory amid ongoing pandemic volatility, with hotel room demand and revenue projected close to 2019 levels—room revenue projected to reach approximately $168 billion and occupancy nearing 63.4%. Travel readiness remains volatile, influenced by factors such as COVID variants and global restrictions, impacting international and domestic travel, notably with international travel expected to surge by 228% year-over-year.
The industry faces headwinds including staffing shortages, lagging ancillary revenues, and subdued business travel—still over 20% below pre-pandemic levels—while leisure, bleisure, and digital nomad segments are poised to drive demand. Key strategic focus areas include evolving loyalty programs for a hybrid traveler base, integrating advanced technology for personalized guest experiences, and emphasizing sustainability initiatives. Hoteliers must adapt to the “new” traveler motivated by health, safety, purpose, and social responsibility, which will influence operational priorities, marketing, and workforce development through diversified career paths and sustainability commitments, as the industry navigates recovery and prepares for long-term growth.
The industry faces headwinds including staffing shortages, lagging ancillary revenues, and subdued business travel—still over 20% below pre-pandemic levels—while leisure, bleisure, and digital nomad segments are poised to drive demand. Key strategic focus areas include evolving loyalty programs for a hybrid traveler base, integrating advanced technology for personalized guest experiences, and emphasizing sustainability initiatives. Hoteliers must adapt to the “new” traveler motivated by health, safety, purpose, and social responsibility, which will influence operational priorities, marketing, and workforce development through diversified career paths and sustainability commitments, as the industry navigates recovery and prepares for long-term growth.