The Solution to Our Problems is Jobs

Tell Congress It’s Time For Them to Get to Work

A lot of people in the hotel industry are feeling pretty cocky these days. Occupancies, rates, RevPARs are all rising, not back to the record levels of 2006-07, but still going in the right direction. Forecasters call for a great winter season for both snow and sand resorts, and flush-with-cash corporations are putting their people back on the road to do business. So where’s the problem?

The problem is the U.S. needs jobs now and it needs lots of them. Unless millions of unemployed and underemployed people get back to work soon, the economy is in serious danger of falling back into recession, and all the lodging industry’s hard-won performance gains will quickly slip away. We can’t wait for the presidential election, which is 12 months away, or for the start of a new administration, which is nearly 15 months away. Those self-serving, pin-headed dimwits in Washington need to roll up the sleeves of their $250 custom-made dress shirts and go to work to develop a plan that kickstarts the economy now, not in January 2013, when either Obama or his replacement is sworn in. It will be too late then, I’m afraid.

Of course, besides the near-total gridlock in Washington, the problem is uncertainty. And, sadly, most of the uncertainty is a reaction to the gridlock—a bad combination. Even though they have record profits and loads of cash on hand, businesses say they’re not hiring because they’re not sure about the economy, the regulatory environment, corporate tax policy, the European economic crisis, our own debt crisis and who knows what else. Group meeting bookings are softening because of the uncertainty, and in recent weeks, hotels have seen a weakening in transient bookings and a shrinking booking window.

Leisure travel, the one bright spot in the hotel economy even during the dark days of 2008 and 2009 (and in the post-9/11 years of 2002 and 2003), is still holding up, which accounts for the rosy forecasts for winter vacation travel. But even that segment of travelers is vulnerable to this growing wave of uncertainty. Many Americans who have what they believe are stable jobs see layoffs around them and don’t see their firms doing much hiring. A lot of people are wondering, “Am I next to be let go?” That sentiment, especially if it continues to grow, has got to put a crimp on people’s vacation travel plans. Who’s going to book a week in Hawaii if they’re afraid they may not have a job when they return?

As helpless as we all may feel, we can’t give up. As I’ve counseled many times on many issues, you as successful business people (and as representatives of an industry that’s actually hiring people) have clout with your elected representatives. Call one or more of them today and tell them to, at least for the time being, forget about the deficit, the Greek debt crisis, tax reform, immigration reform or any other legislative issue of lesser importance and work full-time getting America back to work. A lot of the uncertainty will evaporate even if we perceive Washington is moving in the right direction. We’ll all be lost if it doesn’t happen now.

Related Stories
Is It Boom or Bust Ahead for Hotels?
Still Confident, Lodging Industry Braces For Bumpy Road
Leisure Hotel Rates Realize Record Growth


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