Slowdown: Report says revenue, bookings off over last year

New Orleans leads way in industry wide slowdown
Photo credit Getty Images - Kruck20

Hotel analytics firm STR says New Orleans is leading the way in a decrease of business among the 25 top markets in the hospitality industry.  

New Orleans showed double digit drops in revenue compared with the same month last year. 

The steepest decline came in average daily rates.  ADR showed a 6% drop from more than $170.00 to just above $160 for the same October month year-over-year.  

Revenue-per-available-room, another metric in gauging performance dropped by more than 10% to just below $120. 

Occupancy also dropped 5% to just over 75%.  

"We are projecting slowing down of the overall market place as we look at the next 30-months," says Mark Romig, President and CEO of The New Orleans Tourism and Marketing Corporation.  

"It could be attributed to a number of things," Romig says.  "I think certainly the rise in short term rental." 

Romig says this is the time to up their game and take affirmative action.  "We are sensing it and we are planning around the fact that we are going to need to put all available resources to ensure that we do our part to keep our economy healthy."

The slowdown comes at a time when massive investments are being made in improvement of infrastructure.  

"We're to invest in our infrastructure, particularly our convention and meeting facilities," Romig says.  "There is a half-billion dollar upgrade happening along Convention Center Boulevard and in the convention center itself because it hasn't been touched in many years and that has to be done so that we can compete appropriately."

Romig says it's an incredibly competitive industry when going after convention and meeting business and pursuing tourists.  

"We will remain with our message that New Orleans is a great place to visit, its a great place to do business," Romig continues.  "That's going to be our mantra going forward."