STR and Tourism Economics have again lowered projected gains in the average daily rate and revenue per available room for 2024, though by less than a percentage point each from the previous forecast, Northstar Meetings Group recently reported.
With each quarterly forecast this year, predicted increases have gotten progressively smaller. Northstar reports the predicted average daily rate increase of 1.5% was downgraded by 0.5%. At the same time, the expected rise in RevPAR was lowered by 0.6% to 1.4% while the occupancy outlook dropped slightly by 0.1% to 62.9% for the year.
For 2025, STR and Tourism Economics lowered projected occupancy by 0.4%. The companies now expect ADR to grow 1.6%, compared with their previous forecast of 2%, while RevPAR is projected to rise 1.8% in 2025, compared with their previous estimate of 2.6%.
The 2025 forecast for travel and meetings remains positive based on current economic drivers, though the outlook for next year remains somewhat up in the air, according to STR and Tourism Economics executives. Higher cost of living could potentially offset positive sentiment. Based on current economic conditions, higher-end hotels could continue to drive industry performance, Northstar reported.
There remain questions about how the incoming presidential administration will affect travel. The current forecast was prepared before the U.S. election, so it does not reflect those results.
