Forecasts for Upcoming Year

This Wednesday I will speak at the monthly luncheon of the Greater Louisville Hotel & Lodging Association luncheon. The LCVB operates on a fiscal year budget; July through June each year. The Bureau is forecasting a drop in hotel occupancy from 55.9% to 53.4% representing a 2.5% drop. We are forecasting hotel average room rate to increase from $91.54 to $94.00. 

As stated at the Louisville Tourism Summit, we strongly encourage our hotel partners to hold the line on hotel room rates this year. If a concession has to be made to book a piece of business, we ask our hotel partners to offer value added as an incentive. We know many of you have already done so and greatly appreciate your sales strategies so as not to allow erosion in the hotel room rate.

The LCVB is forecasting an 11% decrease in funding next fiscal year which means a decrease in some of our programming. From a revenue standpoint, it’s a decrease of $1.5M from our 2009/2010 budget. The Bureau will continue to do all it can from a sales standpoint. We will adjust some tactics as has everyone else. If you can, please try to attend the Greater Louisville Hotel & Lodging Association lunch on Wednesday. Following my presentation I will take your questions. Hope to see you there.