U.S. hoteliers expect a mixed bag when it comes to demand this summer, likening it to what happened in 2023.
International destinations and cruises are available again, drawing away travelers from what just years ago had been high levels of domestic leisure demand. International inbound remains a demand segment hoteliers hope will return in the near future.
That’s not to say every hotelier is projecting a lackluster summer. It is, as the saying goes, a street-corner business.
This summer, Hotel News Now is checking out those street corners, speaking with hotel general managers across the U.S. to see how demand is playing out over the coming months.
For the first in this podcast series, HNN spoke with Kevin Ellis, general manager at the Hyatt Regency Monterey Hotel and Spa on Del Monte Golf Course for Davidson Hospitality Group. Ellis, who has managed the property since late 2018, said the business mix now seems to be skewing more toward transient travel than before.
There’s been some hesitation in the tech markets as they’re dealing with some economic factors, which is affecting group demand, he said. On the flip side, there’s been stronger-than-expected drive-market traffic.
The Hyatt Regency Monterey Hotel and Spa has benefited from new events coming to the market, such as the IndyCar Monterey Grand Prix on June 23, while also facing tougher comps due to the U.S. Women’s Open held at Pebble Beach Golf Links last year.
From a financial perspective, Ellis said he expects this year will be similar to 2023.
“Perhaps we're seeing a little bit of rate erosion, but perhaps trading that for a couple of points in occupancy, so [revenue per available room] seems to be growing year over year,” he said.
Overall, there’s been a sense of normalization in guest behavior and expectations, Ellis said. Guests want a suite-type room or have access to outdoor areas. They want uninterrupted Wi-Fi. They want to enjoy spending time with their family and get some work done.
Wellness remains an important factor for both leisure and business travelers, he said. Food-and-beverage programming is critical and ever-evolving, and the hotel’s spa offerings, particularly Hydrafacials, have been popular with guests. The hotel has a relationship with Pebble Beach, and it has access to the Del Monte Golf Course. The property also has six tennis courts, half of which have been converted to pickleball courts.
“The pickleball traveler now has just become a new part — you could carve out a new segment for that individual,” he said.
These guests travel around to different warm-weather markets, such as Phoenix, Dallas and Las Vegas, to play pickleball, he said.
“It's a very qualified customer that stays for a long period of time and has money to spend, and it's been kind of a fun addition to our recreation program here,” he said.
For more from HNN's conversation with Kevin Ellis, listen to the podcast above and subscribe to the Hotel News Now podcast on Apple, Spotify or wherever you find podcasts.