Thursday, February 4, 2016

Low Oil Prices Boost Hotels

Low prices for energy, particularly oil-based fuel, are good for the economy in general but are particularly good for the hospitality sector. Energy costs represent a significant part of the cost structure of a hotel, most notably for climate control in winter and summer, so lower energy prices reduce the cost of operating a hotel. At the same time, low prices for fuel make people more willing to travel, particularly by car and airplane, and that results in more customers at the hotel. in its latest monthly HIL index is projecting a boost of 0.2 percent in the hotel business, largely on the basis of the decline in energy prices in December. This follows a series of upward moves in the HIL previous months. says the HIL is a leading indicator that is four to five months ahead of changes in business results at U.S. hotels.