Business travel growth
in certain parts of the United States is slowing, according to a U.S. Federal
Reserve report. In the Fed's Boston district, for example, tourism industry
contacts "expect that overall 2012 performance will be strong, but express
concern that performance will weaken over the last few months of the
year," according to the report on economic conditions
during the past six weeks.
"While a rebound in business travel has fueled 2012 performance to date,
weakness in Europe might slow this down."
Atlanta and Florida
districts also reported a drop in incoming European travelers, but indicated
that those declines were "offset by an increase in business from Central
and South America."
Airlines told the Fed of
seasonally weaker international passenger demand in the Dallas district, and
while domestic demand "remained strong" there for both leisure and
business travel, "contacts expect weaker passenger demand over the next
few months but noted it will likely remain near last year's levels." The San
Francisco district's travel and tourism sector "reported additional gains
for business and leisure travel, although the pace of growth has slowed of late
in some areas such as Las Vegas."
The Fed report also
noted mixed lodging industry performance. In New York City, hotels
"indicate that revenues per room were up roughly 6 percent from a year ago
in June but up by a more modest 2 percent in July, as growth in room rates
slowed and occupancy rates leveled off at close to 90 percent." In Albany
and Buffalo, N.Y., average rates and occupancies "have climbed and are
well ahead of year-earlier levels."
In the Atlanta district,
the Fed's hospitality contacts "reported strong hotel occupancy and room rates
for July through mid-August. Convention bookings showed continued
strength." In the Kansas City district, "after strong gains in June,
hotel occupancy fell slightly in July and early August, but average room rates
continued to rise."
One Fed hotel source
from the Richmond district "said that bookings were making no great
strides, primarily as a result of government travel cuts," according to
the report. The district experienced a similar government travel reduction
during the previous reporting period.