PwC just released their forecast for the second half of 2011 and 2012 - it's lower although still anticipates positive growth. How does this impact you? 

While macro trends are critical in understanding the backdrop of the marketplace, the specific impact is more closely related to the conditions within your back yard and the strategy you adopt to drive revenue: it's even more important to analyze your market segment strategy, per hotel, and ask your teams to

• develop an assessment of the opportinity in each segment
• clarify what the maximum opportunity is in occupancy and at what rate
• assess how service and amenity options can enhance the value offering
• map the potential into your budgets, by segments, using a couple rate and occupancy variables (more variables will just confuse the assessment)

The cummulative outcome from each segment will provide a result which is more tailored to maximizing potential from each segment vs. trying to apply a target RevPar outcome across segments evenly.

After all, while rate and occupancy are all important metrics, what really counts is WHAT YOU BANK! That requires a different mindset in your team.

Extracts from the PwC report: the full article and report are available by clicking here 

The reduced outlook for the lodging sector reflects the balanced consideration of weaker economic fundamentals on the one hand, and solid year-to-date lodging trends on the other. The steady growth of lodging demand during recent months, even as the economy slowed, demonstrates the underlying momentum of lodging's recovery. This recovery of lodging demand is expected to continue, but will be tempered by the weaker macroeconomic outlook. .......

As a result, lodging demand in 2011 is now expected to increase by 4.6 percent, which combined with still benign supply growth of 0.8 percent, is expected to boost occupancy levels to 59.8 percent.

Increased confidence of occupancy gains are expected to be offset by the weak economic outlook, resulting in an average daily rate (ADR) increase of 3.6 percent in 2011. In 2012, ADR recovery is expected to play a bigger role in RevPAR recovery, resulting in a 5.1 percent and 6.2 percent increase in ADR and RevPAR levels, respectively.