A new report from the American Hotel and Lodging Association (AHLA) highlights the still-significant hit that many businesses are taking from Covid-19. Despite plenty of optimism around vaccines and the less intense Omicron variant, the widespread adoption of Zoom and other virtual meeting spaces still seems to be putting a big dent into business travel – the largest portion of revenue for hotels across the country, particularly in larger cities that may frequently host meetings and conferences such as Atlanta.
Nationwide, 2022’s projected business travel is some $20 billion off the pace of 2019, with projected revenue of just over $69 billion compared to $89.6 billion in pre-Covid 2019. That’s a 23 percent decrease. However, it is an improvement compared to the $108 billion lost in 2020 and 2021 combined.
In Georgia, that revenue drop is projected at over $431 million, a 16.5 percent decline. The revenue drop is 13th most in the country.
“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,” said 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.”
Leisure travel is projected to return to pre-pandemic levels this year but companies that may be on the edge of traveling for meetings or conferences are still often choosing the virtual route.
Georgia did have an advantage of returning to normal quicker than other places. Washington D.C., one of the places with the strictest Covid rules for quite some time, is still down nearly 60 percent compared to pre-Covid times. California is likely similarly situated, down more than 34 percent. There is a great deal of internal travel within California and that would have impacted revenue as well.
No city or state in the South was in the top 10 for declines. Three of the top 10 city percentage declines were in California but Wyoming topped the list by state. Their overall pre-Covid revenue was less than 10 percent of California’s but they had nearly a 63 percent drop since 2019.
As Rogers noted though, more Americans are agreeing that face-to-face interactions are an important part of doing business. A recent AHLA survey found that 80 percent of employed Americans, and 86 percent of business travelers, say in-person meetings are important for maximizing company success. A recent study from the San Diego State University School of Hospitality & Tourism Management even found that companies that have resumed business travel more quickly are likely to have a competitive edge over those that do not.
