- October 18, 2021
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The rebound in Atlanta’s hospitality industry that looked so promising this summer remains choppy as we move toward the end of 2021. The surge in leisure travel we experienced at the beginning of the summer has given way to the anxiety and uncertainty of the delta variant of Covid-19.
Travel sentiment data from Destination Analysts, Longwoods International and Tourism Economics all indicate a severe downtrend in traveler confidence since the end of June. One third of individuals with travel plans this year have canceled or postponed their trips until next year. Corporate business travel remains depressed, and a recent survey shows that 56% of people are unlikely to attend a conference or convention until the pandemic is resolved, up from 45% in June.
These shifts in travel sentiment indicate we will be swimming upstream a little longer than anticipated.
Even though we still have a convention or major event scheduled approximately every 10 days through the end of the year, it is the uncertainty of attendance levels that is putting pressure on the industry.
Atlanta Convention & Visitors Bureau (ACVB) projects the average hotel occupancy rate for the city of Atlanta at year-end will fall between 46% and 48% – up from 36% last year. Even our pace for booking long-term meetings has taken a hit as meeting planners delay their decisions to book future conventions until there is more clarity on travel patterns following the pandemic.
Our hospitality industry is dealing with a double-edged sword, as attracting employees remains another significant challenge for our restaurants and hotels. Even as we have seen some recovery, we are at risk of being able to provide the level of service that customers have come to expect when they come to Atlanta. ACVB has joined with several other groups in reaching through our channels about the career opportunities in hospitality.
Yet, in the face of these headwinds, there are still many reasons to be optimistic as we head into 2022. Several of our demand generators – concerts, festivals and sporting events – are now operating at or near capacity. Our robust convention calendar for 2022 remains intact and as we put the most severe impacts of the Covid-19 pandemic behind us, we should see a significant uptick in travel and attendance.
The United States recently announced that international air travel for vaccinated travelers worldwide will begin in November. This is particularly important to Atlanta because up to 20% of attendance for our very largest conventions comes internationally.
Just as the reduction in travel has had a significant economic impact on our industry and our city, pent-up demand for business and leisure travel, both at home and abroad, should drive an important economic rebound that could continue for several years.
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