Kalibri Labs Predicts Lodging Recovery Slowdown for Rest of 2021 – BTN

Citing sluggish group and business demand, weakening leisure demand and the spread of the Covid-19 delta variant, Kalibri Labs now projects a recovery slowdown for the remainder of 2021, according to a company report released Wednesday. 

Both airline bookings and hotel demand dropped off in July compared with June, according to Kalibri’s “Mind the Gap” report, and the company anticipates this will continue after schools return to in-classroom learning. Although demand and average daily rate trends the second half of the third quarter and fourth quarter historically have been characterized by strong group and business travel, most large groups won’t return in a meaningful way until 2022, resulting in occupancy and ADR pressure on large urban hotels, according to Kalibri. Further, the resurgence of Covid-19 cases is likely to delay many companies’ plans to return employees to the office. 

The report also showed that leisure demand—which for Kalibri includes social, military, educational, religious and fraternal groups – has been gaining on non-leisure demand, which Kalibri labels commercial, since 2015, not just over the course of the pandemic.

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