News

9 in 10 hoteliers expect significant drop in ADR and Occupancy

ADR, Occupancy

Hotelier sentiment worldwide indicates lowered expectations for ADR and Occupancy, based on the recent findings from eRevMax’s Hotel Sentiment Survey. Revenue is expected to decline, and hotel price wars might lead to further dent on profits. Technology is expected to play a critical role in helping hotels with various revenue and operational aspects while optimizing costs.  

ADR, Occupancy

The survey showcases that respondents’ expectations remain low on business bouncing back quickly, and that effective control of the pandemic is of paramount significance to recovery of the travel and tourism sector. An overwhelming 91% of respondents expect the ADR to fall, while 40% of them fear it would fall by 30% – 50%.  The apprehension is also reflected in their expectation on Occupancy where 89% indicate there will be a sharp fall in occupancy of which around 77% feel it can drop by 30% – 50% compared to the pre-Covid level. 

Udai Singh Solanki, Co-CEO and CTO, eRevMax observed, “The travel and tourism industry is one of the hardest-hit segment due to the pandemic, and the entire value chain – including hotels, airlines, tour operators, travel agents are reeling under its effect. Compared to the 2008 global financial crisis, the magnitude and impact on the drivers of occupancy and ADR are much larger. We expect structural changes in the hotel business with a shift in consumer preference, brand positioning, and sustainability. The pre-Covid business strategies will need major revision in the post-Covid world.” 

ADR, Occupancy

The eRevMax Hotel Sentiment Survey is based on data collected through online questionnaires sent to hoteliers in June – July 2020 to understand their outlook on key performance indicators.  

eRevMax plans to publish country reports for key markets to showcase relevant booking trends and traveller expectations for hotels to use and rebuild their distribution strategies. 

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