The Federal Reserve on
Wednesday reported recent year-over-year business travel growth in Atlanta and
San Francisco, and generally improving hotel industry metrics in other areas.
In a summary of current economic conditions from its 12 districts, the Fed
concluded that "national economic activity expanded at a modest to
moderate pace during the reporting period of late November through the end of
December."
The Atlanta district
experienced higher air travel levels than in the previous year, and higher
average hotel occupancy and room rates. "Business travel improved over
year-ago levels, although reservations were being made closer to departure
dates," according to the report.
Hotel market conditions
showed strength in other districts. New York hotels, for example, reported
occupancy rates "at just over 85 percent in November and the first few
weeks of December—up moderately from a year earlier." New York hotel room
rates rose an average of 2 percent to 3 percent. The Boston district projected
2012 hotel revenue per available room would increase as much as 12 percent from
2011.
Not all districts are
experiencing a healthy hotel market. "Hotel contacts on the Virginia coast
reported that bookings have not increased as expected, owing to the difficult
economy and cuts in federal government spending on travel," according to
the Fed's report. "One hotel representative noted that government
employees are now sharing rooms rather than booking individually. Rates were
generally unchanged."