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AHLA Report

By M+E Staff

Hotel business travel revenue will be down in 2022.

While the hospitality industry is beginning to rebound as the pandemic seems to wane, hotel business travel is still taking time to recover. (See also Infographic on page 38.) According to a report issued by the American Hotel and Lodging Association (AHLA), leisure travel is expected to return to pre-pandemic levels this year. However, the 2022 report projects that hotel business travel revenue will be down 23% from 2019, which equates to a $20-billion decrease.

Some states are disproportionately impacted. New York, Massachusetts, Illinois, New Jersey, California, Maryland, Minnesota, and Washington are among the states projected to end 2022 with the largest percentage declines in hotel business travel.

Michigan is expected to end the year with a revenue decline of 16%—down from $1.454 billion in 2019 revenues to $1.222 billion in 2022.

“While dwindling COVID-19 case counts and relaxed CDC guidelines are providing a sense of optimism for reigniting travel, this report underscores how tough it will be for many hotels and hotel employees to recover from years of lost revenue,” notes Chip Rogers, president and CEO of AHLA. “The good news is that after two years of virtual work arrangements, Americans recognize the unmatched value of face-to-face meetings and say they are ready to start getting back on the road for business travel.”