The Hotel Demand Pulse: June 2021

Demand for summer travel is heating up as we head into the July 4th holiday weekend. We are seeing hotel demand for Fourth of July check-in dates increase at a rapid rate. Based on the recovery we saw for Memorial Day travel, we expect July 4th demand to be at or near 2019 demand levels which would be approximately 3x the demand we saw for Memorial Day weekend this year.

In both the U.S. and Europe, COVID-19 cases have dropped to levels not seen since March 2020. These drops have resulted in strong demand growth in both regions. APAC has seen dramatic drops in cases as well since last month, but demand has not yet reacted with significant growth. This was primarily due to demand drops in southern countries including India, Taiwan, Thailand, Indonesia and Malaysia. However, there has been modest growth over the past three weeks that could signal additional recovery.

Here is an overview of the key insights for each region this month:

U.S. Highlights

  • Demand remains at a high point for the year and above the high point for 2019.
  • Cases continue to drop and are at March 2020 levels.
  • International demand represents ~4% of total U.S. demand with LATAM and EMEA making up the largest share.
  • 4th of July demand is increasing rapidly and expected to be at or near 2019 levels.
  • Cities along the Pacific, Atlantic, and Gulf Coasts have had the strongest growth YTD as travelers eye beach destinations for summer travel

Europe Highlights:

  • Demand increased sharply from April-June but appears to be leveling out.
  • In tandem with the demand increase, cases dropped sharply and are near March 2020 levels. However, cases seem to have leveled out as well.
  • Overall demand still remains 27.5% below 2019 levels but could reach full recovery by the end of summer.

APAC Highlights:

  • APAC saw a decrease in cases similar to the U.S. and Europe throughout the month, with levels now near September 2020.
  • Demand did not react to the case decline with growth, likely due to travel restrictions. However, over the last week, there was a 7.6% increase in demand.

Our team will continue to keep a close eye on the data and emerging trends and report on any important updates as they become available. To see more data for these regions and others, download the June edition of our monthly insights report here.