U.S. Travel and Hospitality

U.S. Travel and Hospitality Outlook—2019

As we move forward into 2019, investors in hospitality and lodging want an idea of what they can expect. It’s important for hotel investors to understand predictions in the travel industry altogether to prepare for changes in their sector specifically. Deloitte’s 2019 U.S. Travel and Hospitality outlook gives investors a clearer look into this year.


In just eight years, airline revenue increased by a $107 billion – $115 billion to $222 billion from 2009 to 2017. Why? Low-cost carriers, such as Southwest Airlines, began offering lower fares to consumers, leading other chains to do the same in order to compete, creating a spike in travel. Today, many travelers choose their flights based off search engine results which are programmed to update consumers on the best and cheapest fares. Airline operators will have to consider just how accessible information to inexpensive fares is when strategizing revenue management.

Ground Transportation

With revolutionary ridesharing options like Uber and Lyft, ground transportation such as taxi cabs and city buses have been facing major competition. Airlines have already been partnering with ridesharing entities by creating designated drop off/pick up areas in airports for Uber and Lyft drivers. It’s predicted that ground transportation companies will begin to update business models and integrate subscription-based services to meet consumer needs.


Hotel gross bookings increased by $69 billion from 2009 to 2017 – from $116 billion to $185 billion. Hoteliers are highly encouraged to plan accordingly in order to keep up with growth in gross hotel bookings and combat inevitable downturn. Research shows that hotel owners who actively plan ahead for downturn are more profitable when downturn actually happens. When revenue generation isn’t high, hotel owners should avoid the temptation to cut costs on talent and services.

These sectors are already beginning to intertwine. Consumers, for instance, can now book flight-hotel combos all within minutes of a search result on Google. Hotel investors need to stay up-to-date on the changes within their industry, and NewGen Advisory is dedicating to helping you do just that, plus increasing your chances of a successful hotel investment. Speak to our brokers today!

Share This Post