Cornell Hospitality study documents hotels’ recovery after crises
Ithaca, NY – Hotels in the United States made an unexpectedly rapid recovery after two tremendous shocks during the decade of the 2000s, according to an article published in the November 2012 issue of the Cornell Hospitality Quarterly (CQ). Using STR data to analyze nearly 35,000 U.S. hotels, the study, “The Terrorist Attacks of 9/11 and the Financial Crisis of 2008: The Impact of External Shocks on U.S. Hotel Performance,” was conducted by Professors Renáta Kosová and Cathy A. Enz of the Cornell University School of Hotel Administration.
The terrorist attacks of September 11, 2001, and the financial crisis of September 2008 were both terrible shocks to the nation and its economy. Kosová and Enz were able to use the STR data to isolate the specific effects of the two shocks, separate from other market factors, including inflation and type or size of hotel.
“It’s no surprise that hotels were significantly affected by both events, given how serious they were,” said Enz, who is the Lewis G. Schaeneman, Jr. Professor of Innovation and Dynamic Management. “But we found that they started to recover relatively quickly, within four months of each shock.”
Added Kosová, who is an assistant professor at the school: “We saw an abrupt impact on occupancy and rate from the 9/11 terrorist attacks, but the effects of the financial crisis took longer to develop, and most hotel managers seemed to handle the downturn in business as time went on.”
Enz and Kosová conclude that overall, their study paints a picture of an industry that maintains its ability to address the effects of external shocks, and focuses well on revenue management.
The November Cornell Hospitality Quarterly also focuses on restaurant management, including two analyses of restaurant tipping patterns by racial minorities and a revenue management analysis of restaurant service pacing. Also in the November issue, an explanation of the legal limitations contained in cruise line ticket-purchase agreements and an analysis of room occupancy tax regulations as they affect online travel agents. – Cornell Hospitality
