Hotel Occupancy Suffering Nationwide

In February, President Obama said companies getting government bailouts shouldn't buy corporate jets or go to Vegas or the Super Bowl on the taxpayer's dime. The president, at the time, was trying to muster support for his government stimulus projects. That comment sent shock waves across corporate America and companies cancelled meetings left and right. That statement was on the heels of the auto industry executives who each flew on private jets to Washington, D.C., to testify about the need for a government bailout for the automotive industry.

Clearly there is a need to help the automotive industry, which is a separate issue in itself, but the effects the president’s words have had on the meetings market have been devastating to most cities, especially Las Vegas. We began seeing the effects of the weakened economy in August of 2008, but the severity of the weakened economy has come these past few months.

So now that April’s hotel rate and occupancy numbers have been reported by Smith Travel Research, we did a look-see on ten of the top 25 markets to see the economy’s impact. We also evaluated Louisville’s position within its competitive set. Once you evaluate the following charts, you’ll see just how soft the economy is right now and its effects on the lodging industry. The good news in all of this is that Louisville comes in second with the least amount of market share loss in its competitive set plus the top 25 markets.

Top 25 Markets YTD comparisons April 2008 vs. April 2009

Market Share Loss Report
Source – Smith Travel Research