Category Archives for Hotels.
For the week ending March 21, U.S. hotel occupancy fell to its lowest level ever recorded. Occupancy fell by 56% and average room rates fell 30%. Group (event) occupancy was down to 1%. And occupancy rates are likely even lower right now – we’ll just have to wait about a week to learn just how low.
I’ve had several readers ask about expiring Hyatt free nights. They’re offering reservation cancellation flexibility, postponing peak season award pricing and hotel category changes and have paused expiration of points through May 31.
Like many other programs they haven’t said anything about elite status for the year yet. And they haven’t spoken to free nights – I have one myself expiring April 2. Here’s what I learned.
Hilton has come out with new accommodations for prepaid reservations, points expiration, free weekend night certificates and elite status. With customers largely not staying at hotels, Hilton is going to hang onto elites, extending everyone’s status. They’re extending the validity of everyone’s points and any credit card free weekend night certificates. And they’re extending flexible cancellation of prepaid hotel bookings by two months through the end of June.
After furloughing tens of thousands of hotel employees Marriott is set to furlough two thirds of its corporate staff both from among its 4000 employees at corporate headquarters in Bethesda, Maryland and abroad.
For the week of March 8 – 14, hotel data on occupancy and room rates is now available. In the U.S. revenue per available room was down a whopping 32.5% year-over-year. Since occupancy was ‘only’ down 24.4% by then, we can confidently state that things are worse this week, and will gett worse still.
As China recovers from COVID-19, and hopes to stave off a second wave of infections, they’re testing people entering the country. Even with a low volume of international flights that’s led to long delays and frustrations entering the country. As a result there’s a strong fear of foreigners.
Hyatt is offering 90 days of Explorist status and a fast track to either keep Explorist or top tier Globalist through February 22. The best thing is that you have until November 16 to register and start the 90 day clock. As a result you can use this once your travel is starting up again.
The hotel industry met with the President today. The airline industry is asking for about $58 billion in subsidies.
What would Wag The Dog‘s Dustin Hoffman say about $58 billion? “This is nothing.” The hotel industry wants $250 billion.
Hotels that are empty don’t need so many people at the front desk or servicing rooms. Restaurants that aren’t allowed to serve guests except on a to-go basis don’t need as many servers, even if they had guests. And so Marriott has furloughed ‘tens of thousands’ of employees who will not be paid, but will continue to receive health benefits. Many hotels will also be closing.
Hyatt was first out of the gate with an offer of points for customers having to cancel non-refundable bookings. I thought that was generous because they were first and it was something. Of course this is all fast-moving, and other hotel chains have since done more.
So Hyatt has responded, well I think, and is out with a new policy allowing for cancellation of non-refundable bookings, encouraging new bookings, and offering greater flexibility for Hyatt points.
Gary Leff is one of the foremost experts in the field of miles, points, and frequent business travel -- a topic he has covered since 2002.
Co-founder of frequent flyer community InsideFlyer.com, emcee of the Freddie Awards, and named one of the "World's Top Travel Experts" by Conde' Nast Traveler (2010-Present) Gary has been a guest on most major news media, profiled in several top print publications, and published broadly on the topic of consumer loyalty. More About Gary »
