We also have to look at the transportation infrastructure in this country and observe how it impacts hospitality. For example, it is getting to be harder and harder to get from Point A to Point B these days, thanks to overcrowded skies, air traffic delays and increased energy costs. As traveling gets more expensive and more difficult, both business and leisure travelers may think twice before heading out of town. Again, such problems in the transportation infrastructure could result in a slowdown of our business. We also have to look at some operational concerns.
Top of mind is energy.
Look at what is happening in California and discern what would happen if a similar energy crisis spread across the country. If energy costs take a bigger bite out of a hotel's bottom line, it could well mean smaller profits. At the same time, given a shrinking labor pool, the industry has to pay more to draw high quality employees. So, with the costs of energy and employees both trending upward, hotels will either have to cut costs elsewhere or reduce profitability. What the Consumer Wants We must also look closely at the consumer.