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For more than two decades, Adam Sacks, president of Tourism Economics, has worked with destinations, industry associations, and companies around the world in the areas of opportunity and risk assessments, policy analysis, and economic impact. During this year’s ROC Americas, taking place during HSMAI Commercial Strategy Week, Sacks will present his general session “Economics Beyond the Forecast” on June 29. The session will share Tourism Economics’ latest views on the economy, the mindset of travelers, and expectations for how and when travel will fully recover. It’ll also explore which are the most important economic principles for hoteliers to watch, what they mean when setting room rates, and more. Here, he gives a glimpse of what else ROC attendees can expect to learn in his session.
HSMAI: What can ROC attendees expect to learn during your general session?
Adam Sacks: The economy should provide a foundation for continued recovery in demand. But this foundation has some notable cracks in it that represent real risks. My presentation will lay out our thinking behind the most recent TE/STR lodging forecast and how the industry can prepare for different scenarios.
What has surprised you most about the industry’s recovery so far?
The strength of rate recovery has exceeded my expectations. While there are reasonable explanations, the recovery of ADR is unprecedented as it has outpaced the recovery in demand.
What do you think has been the biggest misconception about economic recovery during this time?
Talks of a “new normal” in regard to travel were reckless in my view. These were especially prevalent in terms of business travel. But we’ve seen time and again that face-to-face meetings are essential to business operations and the recovery of business travel is bearing out this reality.
What is one key takeaway attendees will obtain after hearing your presentation?
I hope to share a balanced view of market opportunities and risks that will guide attendees through the present uncertainty facing the economy. In terms of revenue management, we’ve learned a lot about price elasticity over the past couple years, which has major implications for rate setting.
What are you looking forward to most about ROC?
Last year, I learned more than I shared at ROC. This helped me serve our clients better. I expect to learn again from attendees who are in the trenches of operations and revenue management.