Hotels across the Gulf Coast are reporting that cancellations are on the rise due to the approaching oil slick.
According to a recent survey from The Knowland Group, 42 percent of hotels that host meetings are experiencing group booking cancellations. That figure is up seven percentage points from the survey conducted two weeks ago. The survey included 50 hotels in the Gulf Coast.
Hotels are also beginning to confront difficulty in booking future events. More than 60 percent of hotels surveyed have said the impact is minimal at the moment, with 8 percent and 14 percent reporting moderate and significant impacts, respectively. Those booking difficulties are more near term rather than long term, with 44 percent of hotels surveyed stating that they have immediate booking issues and 40 percent stating issues with bookings over the coming three to six months.
Some hotels are reaping the benefits of the influx of petroleum industry officials, members of the media and environmental groups. Transient business is accounting for a slight increase in room occupancies, with one hotel in Mobile, Ala, reporting that they are completely booked with occupants related to the oil spill.
More than half of the hoteliers surveyed are blaming media hype for the cancellations.
“The media is making it out to be worse than what it really is,” stated one representative of a hotel in Panama City, Fla.
More than half of hotels responding noted they had either a corporate or property level plan at the ready should conditions warrant.
“Right now, the spill seems to be impacting bookings between the present and the next six months, which gives hoteliers time to plan ahead to ensure they maintain business. If things do get worse, hoteliers should consider new ways to proactively increase their sales and needed revenue,” said Knowland Group CEO Mike McKean.
