US citizens used to spend more and save less before the recession. Now, they cant spend, because they dont save. Companies, who laid of thousands of employees, are now managing with less people who provide the same productivity as before. People realized they could curb their luxuries and spending habits and adapt to the failing economy to survive. Even if the US economy wakes up, the American people are not going to freely spend their hard earned money anymore. The new mantra is to save money and survive. The leisure market in hotels has stalled to a new low, and while business travel is trending up, the amount of business travelers have shrunk. Less business with too many rooms in the market. Until, a future generation comes up, who did not have to witness the sufferings of the current economy, I believe the Hotel market is not recovering to its pre recession levels. Its a tough road ahead, my fellow hoteliers. So put a brake on unneccessary spending and get a great management team to keep your P & L statement green. Any opinions?
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