Tech Sector Weakness Contributes to Corp. Bookings Price Pressure
Skift Take
- Truist gave their observations on the latest forward-looking booking and pricing trends for US hotels and checks with contacts.
- STR’s global “bubble chart” update through November 19, 2022 showed the strongest performance of the year thus far.
- The U.S. Travel Association’s latest biannual travel forecast shows a downgrade in international inbound travel for the remainder of this year and for 2023.
The DJIA fell 195 points, Nasdaq was up 14, the S&P 500 fell 4 points and the 10 year treasury yield was down .17 to 3.53%. How is that for a weird market? Lodging stocks were mixed. VCSA was down -5% while SLNA traded down to another new low.
Truist gave their observations on the latest forward-looking booking and pricing trends for US hotels and checks with contacts. Truist said they have observed some modest pressure on corporate bookings and pricing power over the past 45 days. They believe the greatest degree of pressure is coming from additional weakness in the tech sector. Group demand and pricing remains relatively solid albeit with bookings very short term in nature. Growth rates for group 2023 will be significantly lower in 2023 but that is because of tough comps. Truist said forward looking domestic leisure RevPAR trends continue to be resilient, almost entirely driven by ADR at this point as n
