These same issues can impact hotel revenues as other industries. The research suggests that recovering from the pre-existing issues could take up to twenty-three months or more. Investors are also expressing similar thoughts of the outlook for hotel companies, which is apparent in the current underperformance of a number of lodging real estate investing trusts (REITs.) Hotel revenues could also be affected by small fluctuations in the outlook for economic growth. So, any changes to hotel sales can affect your bottom line. https://www.hangugop.com/ilovebam This will ultimately impact your bottom line.
The effects of events like hurricane Katrina could be directly attributable to a surge of tourists from other states resulted in a sharp drop in hotel revenues for the city. The decline in hotel revenue could result in an increase in the cost of guests. It is a common assumption for businesspersons. Because of increased demand the assumption seems reasonable. However, what many business owners do not realize is that a drop in hotel room rates may have an indirect yet very real effect on the New Orleans economy. An indirect impact is, where the decrease in rates for rooms decreases the number of people that travel to the city on a daily basis.
As was mentioned above that the devastation of the hurricane Katrina on New Orleans was felt throughout the entire state. Slidell, New Orleans’ largest city, took the most severely affected. Nearly everyone within Slidell knows the extent and severity of the emergency response. Everybody knows that New Orleans was the hardest-hit city in terms of destruction or damage during the storm. The hoteliers of New Orleans also were affected. The operators of hotels are already taking steps to mitigate any potential negative effects on New Orleans.
Hotel operators are taking steps especially those with many New Orleans hotels, to ensure the New Orleans market. One way they are doing so is by laying off certain portions of their workforce. Another way is by cutting back on some of their hotel facilities. As an example, they may be decreasing the amount of full-time hotel employees and instead turn that function into part-time staff. Another way to reduce unauthorized access is by using digital locks and other security measures that aim at keeping guests out of hotel rooms. All of these are actions that can be significant for the New Orleans economy, even before the full-scale devastation that Hurricane Katrina resulted in.
Alongside protecting hotels from the negative effect on which Hurricane Katrina caused on hotel occupancy rates and income levels, other kinds of New Orleans-based business organizations are also taking steps to address the economic downturn that has followed Katrina. Numerous local retailers and manufacturers have announced the closing of their stores or retraining plans, as well as warehouse closures. Even though the economy remains slow, certain areas in New Orleans have seen the benefits of increased store traffic as well as lower restrictions on travel. In the aftermath of Hurricane Katrina Local businesses have been able to take advantage of lower prices, increased consumer confidence as well as more favorable hotels and travel conditions to boost sales.
In the event that New Orleans experiences a slow start to recovery and the negative impact of lower hotel revenues won’t be felt until the latter part of the year, where the city is expected to experience a bumper festive season. The downturn in the economy has affected hotel operations like never before, and the economic impact that is now being felt by hotel managers is unprecedented. The effect of the recession on many major chains hasn’t been notable, or even noticeable.
The end result is that each business cycle are likely to play an important role in the final impact of the pre-pandemic demands on occupancy rates. But to the extent that New Orleans experiences a period of above-trend occupancy this is a positive sign for both the commercial real estate market and New Orleans itself. The natural effects of Hurricane Irma will be reversed as the occupancy rate rises and tax income increases. In the end an extended period of higher than average occupancy could be the foundation of a healthy tourism economy that can help lift up the business of the city long after the waters recede.