Although transient travel has performed very well this year, it's group travel that will set the stage for 2015, according to PwC US, the U.S. firm of PricewaterhouseCoopers, which yesterday released an updated lodging industry forecast in which it predicts high occupancy and, as a result, high hotel rates.
According to PwC US, group demand still has room to recover to peak levels. When it does -- likely sometime next year -- it will drive hotel occupancy to 64.8 percent, which is its highest level in 20 years. As a result, PwC US forecasts, hotel operators will have "more confidence to push for higher room rates."
"The strengthening of the group segment thus far in 2014 and a strong summer travel season across all price points is encouraging for future occupancy levels and continued industry growth," Scott D. Berman, principal and U.S. industry leader, hospitality & leisure, PwC, said in a statement. "We will be closely monitoring the industry's third quarter results to evaluate any change in momentum."