The State of Hotel Operations: 30 Must-Know Hotel Industry Statistics (2023)

Over the last few years, a lot has changed in the hotel industry. From changes in the labor pool and the impact of social change and the environment on the industry to new technology and operating trends, having access to the right information can help you better understand the current state of the hospitality industry – and help you make informed decisions for your hotel. Here’s what you need to know right now:

The US hotel industry is coming back to pre-pandemic levels, with lower-tier hotels outperforming luxury brands

• The average U.S. hotel occupancy rate is 64.2% as of February 2023. (Zippia)
• 833 hotels opened in the US in 2020, and out of these, 29% were extended stay hotels. Extended stay inventory grew by 10.3%, and the most popular brand was Home2 Suites by Hilton. (Hotel Tech Report)
• There are 90,562 hotel and motel businesses in the U.S. This number is a 0.4% increase from 2021, which is on trend with the average annual growth rate of 0.4% that this industry has seen from 2017 to 2022. (Zippia)
• US total travel spending is forecast to reach 99% of pre-pandemic levels by 2023, and increase to 105% in 2024 (US Travel Association).
• The total number of trips in 2024 is expected to reach 2.47 billion–seeing an increase from 2.40 billion in 2019 (US Travel Association).

The majority of hotel guests typically book their room within the same month timeframe in which they intend to stay.

• 27% of hotel bookings are made through the property directly compared to 25% through the hotel’s own website, and 16% through online travel agencies in 2019. (Hotel Tech Report)
• The average booking window, or lead time, for hotel bookings in the US is about 25 days with the  average length of stay being around  1.8 nights. (Hotel Tech Report)
• PKF also reported that the average American hotel generates 65% of revenue from rooms, while 25% comes from F&B and 10% from other outlets. (Hotel Tech Report)

Hotels are still experiencing a labor shortage and this is causing many hoteliers to rethink the way they structure their business. The hotel labor force is mostly made up of women and most employees do not work full-time hours.

• There are about 1.6 million people employed by the U.S.’s accommodation industry. (Zippia)
• The industry has an unemployment rate of 8%, which is twice as high as the national unemployment rate of 4%. (Zippia)
• According to a survey, 94% of hotels are understaffed, 47% are severely understaffed, and around 50% of those hotels say the shortage is “severe.” (October 2021 AHLA member survey)
• The average employee of the U.S. leisure and hospitality industry makes $19.44 an hour. Employees in this sector work 25.8 hours a week on average. (Zippia)
• Immigrants account for 13% of the total US population. However, immigrants account for 31% of the total workforce in hotels and lodgings in the US. (Deloitte, 2019)
• As per the International Labor Office estimates, 55% of Global Hotel workforce are women. (International Labor Office)

On average, only half of hotel employees have paid time off and as executives look to the future, they are considering ways to increase employee benefits. 

• 43% get paid vacation from their employers, and 50% receive paid sick leave.
  This statistic only counts those who work in the private industry and not those who work for government organizations. (Zippia)
• 32% of U.S. leisure and hospitality industry employees have access to employer-sponsored health care. (Zippia)
•  64.7% of US hotel executives said they would incorporate new technologies to attract and retain staff as part of their 2025 labor strategy (Skift)
• 26% of hotel executives reported that they would like to incorporate mental health and wellness programs by 2025 (Skift)

Hotel reviews remain very important to potential guests as they will typically read them before making a reservation.

• 81% of travelers always or often read reviews before booking their accommodations, compared to 72% of travelers who read reviews before booking restaurant reservations or tour tickets. (Hotel Tech Report)
• 40% of hotel guests are likely to write a guest review after a positive experience compared to 48% of hotel guests are likely to write one after a negative experience, according to ReviewTrackers. (Hotel Tech Report)
• A recent  study found that in 72% of cases, travelers will choose a hotel with a higher guest review score over one with a brand name or a lower price. For example, guests would pay 35% more for a hotel with a score of 4.4 compared to a hotel with a score of 3.9. (Hotel Tech Report)

The need for text based messaging technology for guests to use is on the rise. 

• 35% of hotels say they’re considering upgrading to guest messaging technology in the future. 29% said they upgraded in 2020, and 20% said they upgraded pre-pandemic. (Skift)
• 45%  of hotel guests in 2019 said that they would prefer to report an issue through SMS or a messaging application — instead of over the phone, email or in-person. (Zingle)
• When asked how interested travelers were in staying in a hotel that uses guest messaging, 76.9% say they are somewhat or significantly interested. (Skift)
• 86% of users will think twice before buying from a business with negative reviews. (Invesp)
• A January 2022 study that surveyed hoteliers worldwide identified that chatbot usage in the hospitality sector was expected to increase by 53 percent in 2022. The use of this technology was expected to increase by 42 percent in branded hotels and 64 percent in independent hotels. (Statista)

Guests are focused on looking for environmentally friendly options when staying at a hotel.

• 83% of travelers want to decrease their energy consumption, 79% want to use more environmentally friendly transportation, 76% would like to lower their water usage, and 69% want to reduce the carbon footprint of their vacation (Avantio).
• More than two-thirds (69%) of travelers expect to have the choice of a sustainable travel option (Custard).
• In 2021, 83% of global travelers think that sustainability is vital, with 61% saying that the pandemic inspired them to travel more sustainably (GSTCouncil).
• However, 49% of travelers still believe there aren’t enough sustainable options available (GSTCouncil). 
• 67% of travelers are keen to reduce water usage (e.g. by reusing towels or opting out of daily room cleaning). (Booking.com) 27% believe that accommodations should allow guests to opt out of these services.

Lastly, here is one bonus fun fact!  Did you know that Koshu Nishiyama Onsen Keiunkan in Japan is named the oldest hotel in the world? It was founded in 705 AD.