/ batstem89's Library/ Notes/ Even after an event like Hurricane Katrina, a New Orleans hotelier's ability to determine the effect of an event on tourism can be a challenge to say the least. Based on previous experience the revenue from tourism could be severely disrupted due to event
Even after an event like Hurricane Katrina, a New Orleans hotelier's ability to determine the effect of an event on tourism can be a challenge to say the least. Based on previous experience the revenue from tourism could be severely disrupted due to event
from web site
청주op are directly affected by the kind of events which affect other industries. According to studies, recovering from existing conditions could last as long as a months or more. Investors have been expressing similar thoughts of the outlook of the hotel industry, as apparent in the current underperformance of several investment trusts for lodging (REITs.) Revenues from hotels could be affected by subtle shifts in economic forecasts. So, any changes to hotel revenues can impact your bottom line. This will ultimately impact the bottom line of your business.
The impact of catastrophes such as the impact of hurricane Katrina are directly related to the fact that an influx of travelers from different states resulted in a sharp reduction in the hotel revenue for the city. A decline in hotel revenues could result in lower rates for guests. The assumption that this is the case is widely accepted for businesspersons. In light of the increased demand for rooms it is logical. But what few businessmen are aware of is that a decrease in the cost of hotel rooms may have an indirect but very real, indirect effect on the New Orleans economy. An indirect impact is, that a drop in hotel rates reduces the number of people that travel to the city on every day basis.
As was mentioned above The impact of the hurricane Katrina on New Orleans was felt throughout the state. Slidell, New Orleans' biggest city, was the city that was the most affected. Just about everyone who lives within or around Slidell knows the true story of the massive destruction and devastation caused by the full-service response. Everybody knows that New Orleans was the hardest-hit city when it came to damage or destruction during the hurricane. Hoteliers in New Orleans were also affected. The proprietors of New Orleans' hotel businesses have taken steps to reduce the negative impact for the city.
As mentioned, hotel operators particularly those that have multiple hotels spread across different areas of New Orleans, are already taking proactive steps to protect the New Orleans market. One method they're using to do this is to lay off specific segments of their staff. Another method is cutting down on certain hotel facilities. As an example, they may be cutting down on the amount of employees who work full time in hotels and instead turn that function on to part-time workers. Another method to limit the risk of unauthorized access is to use digital locks and other security measures targeted at keeping guests out of hotels. All of these steps could have a significant impact on New Orleans' economy even prior to hurricane Katrina.
Other than protecting hotels from the negative impacts of Hurricane Katrina on revenue and occupancy, New Orleans area business entities have also taken steps to tackle the economic slowdown following the storm. Local retailers and manufacturers have announced closing of shops, programs for retraining and closing of warehouses. Although the economy overall remains stagnant, at the very most for the time being, certain regions of New Orleans are feeling the advantages of the increased activity and less restrictions on travel. These local businesses could profit from lower prices and increased consumer trust in the aftermath of Hurricane Katrina to increase the sales.
If New Orleans experiences a slow process of recovery and the negative impact of lower hotel revenues won't be evident until the later period of the year in which time the city is hoping to experience a bumper festive season. Hotel operators are experiencing unprecedented economic impacts from the recession. The recession's impact on many large chains is not significantly, if any.
Business cycles and economic cycles both play an important role in the effect that pre-pandemic demand levels have an impact on occupancy rates. However, if New Orleans experiences a period with occupancy rates that are above average which is encouraging of the commercial real estate market and New Orleans itself. The natural impacts of Hurricane Irma are likely to be reversed once the occupancy rate rises and tax income increases. If nothing else the fact that a time of high occupancy may provide an excellent foundation for a healthy tourism economy that can help lift up the business of the city long after the water recedes.
The impact of catastrophes such as the impact of hurricane Katrina are directly related to the fact that an influx of travelers from different states resulted in a sharp reduction in the hotel revenue for the city. A decline in hotel revenues could result in lower rates for guests. The assumption that this is the case is widely accepted for businesspersons. In light of the increased demand for rooms it is logical. But what few businessmen are aware of is that a decrease in the cost of hotel rooms may have an indirect but very real, indirect effect on the New Orleans economy. An indirect impact is, that a drop in hotel rates reduces the number of people that travel to the city on every day basis.
As was mentioned above The impact of the hurricane Katrina on New Orleans was felt throughout the state. Slidell, New Orleans' biggest city, was the city that was the most affected. Just about everyone who lives within or around Slidell knows the true story of the massive destruction and devastation caused by the full-service response. Everybody knows that New Orleans was the hardest-hit city when it came to damage or destruction during the hurricane. Hoteliers in New Orleans were also affected. The proprietors of New Orleans' hotel businesses have taken steps to reduce the negative impact for the city.
As mentioned, hotel operators particularly those that have multiple hotels spread across different areas of New Orleans, are already taking proactive steps to protect the New Orleans market. One method they're using to do this is to lay off specific segments of their staff. Another method is cutting down on certain hotel facilities. As an example, they may be cutting down on the amount of employees who work full time in hotels and instead turn that function on to part-time workers. Another method to limit the risk of unauthorized access is to use digital locks and other security measures targeted at keeping guests out of hotels. All of these steps could have a significant impact on New Orleans' economy even prior to hurricane Katrina.
Other than protecting hotels from the negative impacts of Hurricane Katrina on revenue and occupancy, New Orleans area business entities have also taken steps to tackle the economic slowdown following the storm. Local retailers and manufacturers have announced closing of shops, programs for retraining and closing of warehouses. Although the economy overall remains stagnant, at the very most for the time being, certain regions of New Orleans are feeling the advantages of the increased activity and less restrictions on travel. These local businesses could profit from lower prices and increased consumer trust in the aftermath of Hurricane Katrina to increase the sales.
If New Orleans experiences a slow process of recovery and the negative impact of lower hotel revenues won't be evident until the later period of the year in which time the city is hoping to experience a bumper festive season. Hotel operators are experiencing unprecedented economic impacts from the recession. The recession's impact on many large chains is not significantly, if any.
Business cycles and economic cycles both play an important role in the effect that pre-pandemic demand levels have an impact on occupancy rates. However, if New Orleans experiences a period with occupancy rates that are above average which is encouraging of the commercial real estate market and New Orleans itself. The natural impacts of Hurricane Irma are likely to be reversed once the occupancy rate rises and tax income increases. If nothing else the fact that a time of high occupancy may provide an excellent foundation for a healthy tourism economy that can help lift up the business of the city long after the water recedes.
