. |
HIP: Hotel industry stronger than overall economy:
EDITOR'S NOTE
| July 18th, 2011 |
| e-forecasting.com eNews for the Hotel Industry |
DURHAM, New Hampshire —
After a slight decline of 0.5% in May, HIP climbed 1.4% in June,
according to e-forecasting.com’s expanded HIP report. HIP, the
Hotel Industry Pulse Index, is composite indicator that gauges
business activity in the U.S. hotel industry in real time, similar
to a GDP measure for the industry. The latest monthly change
brought the index to a reading of 100.2. The index was set to equal
100 in 2000.
Looking at HIP's six-month growth rate, which
historically has signaled turning points in U.S. hotel business
activity, HIP’s growth rate remained at high levels, reaching a
rate of 9.8 percent in June. This is up from May's rate of 8.3 and
significantly higher than the long term average growth rate of 3.2
percent.
“The US hotel industry has outperformed the
overall economy fourfold," commented Maria Simos, CEO of
e-forecasting.com. "With our expanded HIP report, we now compare
the hotel industry on a monthly basis to the US economy by
positioning it against our US monthly GDP. This provides a
meaningful analysis for hoteliers thirsty for more timely
information on not just their properties, but the economy overall."
The probability of business expansion in the hotel industry was
at 99.8 percent in June, lower than May's reading of 96.9 percent.
 |
The Hotel Industry Pulse, or HIP
for short, is a hotel industry indicator which was created
to fill the void of a real-time monthly indicator for the
hotel industry that captures current conditions. What the
indicator does is provide useful information about the
timing and degree of the industry’s linking with the US
business cycle for the last 40 years. Simply put, it tracks
monthly overall business conditions in the industry, like an
industry GDP, and points in a timely way to the changes in
direction from growth to recession or vice versa. The
composite indicator is made with the following components:
revenues from consumers staying at hotels and motels
adjusted for inflation, room occupancy rate and hotel
employment, along with other key economic factors which
influence hotel business activity
|
