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Travel slump continues
October 26, 2009

Hotels and resorts in Greater Phoenix suffered through another month of double-digit declines in every major indicator in September as the travel slump continued. Occupancy fell to 46 percent, a drop of nearly 14 percent, according to Smith Travel Research figures released last week. It is only the fourth time since 1987 that area hotels have been less than half-full in September. The last time was in September 2001, following the terrorist attacks, when occupancy plunged 25 percent, to 43 percent.

The average daily rate in September fell to $88.73 from $107.80 a year ago, a 17.7 Revenue per available room, the most closely watched industry measure, plunged nearly 29 percent to $40.82. The area again posted declines that were well above the average for the top 25 markets tracked by Smith Travel.

Despite September's significant declines, industry analysts have said October will be the most telling month this year for hotels in Phoenix and around the country because the economic meltdown intensified this time a year ago. If hotels continue to report sizable declines, "that's a negative on top of a negative," Smith Travel CEO Mark Lomanno said at a conference in Phoenix last month. Improved results will signal some stabilization, he said.

October results aren't due out for a month, but early numbers show declines moderating in the Phoenix area, especially in occupancy. Last week, for example, occupancy was down 5.9 percent, average daily rate was down 11 percent and revenue per available room was down 16.3 percent to $57.14, according to Smith Travel.

Source :-http://www.azcentral.com/