Most within the MICE industry would accept that high-end resort hotels could be more vulnerable to economic recessions because of tighter controls on expenditure and the perception of luxury and public perception in tight economic conditions.
A review of upper-tier resort performance found that these properties suffered more than the average hotel. However, a strong bounce-back has been observed in resort occupancy levels, which should allow for increases in average daily room rates in the future.
Moody’s Analytics forecasts persistent growth in personal income over the next five years and as a result expects growth from 2013 through 2017. Destination resort hotel owners and operators can now begin to plan for increases in room rates as increases in personal income and corporate profits have helped preserve the travel budgets for high income individuals and business groups for high-end destination resorts.