Boosted by record levels of international travel to the United States, according the American Hotel & Lodging Association Lodging Industry Profile released today, hotel industry pre-tax profits reached $28 billion in 2007, up from $26.6 billion in 2006.
The report, a compilation of research data AH&LA releases each fall, showed year-over-year sales for the industry were up 4.5 percent to $139.4 billion.
The number of inbound international travelers last year was up 10 percent to a record level of 56 million. In all, international travel—35 percent of which was business travel—accounted for 22 percent of lodging nights in 2007, according to the profile. While the currently deteriorating economy is expected to cut hotel revenues and occupancy in the coming months, analysts have said inbound travel, boosted by the weak dollar, will continue to grow and partially mitigate those declines
(BTNonline, Sept. 22).
Business travel accounted for 44 percent of lodging business in 2007, according to the profile. A plurality of business travelers, 41 percent, spent at least three nights in a hotel per trip, while about one-third spent one night and about one-quarter spent two nights.
The profile is based on data provided by D.K. Shifflet & Associates, Smith Travel Research, the Travel Industry Association of America, the Bureau of Labor Statistics, the U.S. Department of Commerce, the International Trade Administration, the Office of Travel and Tourism Industries and the Bureau of Economic Analysis.