Another Year Ends Another Begins

And so it goes! 2009 finishes and not too soon of us. What a dismissal year for business.... 36% occupancy was compared to 42% in 2008 and 50% in 2007. The fiasco of Wall Street Economics certainly took its toll on us in the hospitality industry, especially in markets that depend on the business traveler. The bankers and those all connected with the real estate surge financially raped the rest of us. Every time someone stayed with us, I personally thanked them for stimulating the economy, because the banks certainly were doing their fair share. Every time any one of us spent a little money, we helped bring the economy back to normal. Someone rented a room and we in turn paid someone to clean it, someone to cut the lawn, someone to repair a toilet. Hopefully, those that were paid, spent some of it to others and on and on. That's how an economy is established... bartering and trading services and products. Those that hoard their money only hurt the economy from recovering.

It is really annoying for those that put us into this economic mess, are still the ones hoarding after receiving millions to assist them from economic failure and doom! That is life….those that have and those that have-not.... a war between the rich and poor, the affluent and the struggling. It has always existed in our societies and always, always will.

Looking on the better side of things.... just as in the past, the economy will make a come back, maybe not was strong or should I say, as prominent as a couple of years ago, but things will make a turn around. The issue is if you as a business can sustain yourself through the lower cash flow. Not making a profit is not the enemy of a successful business; not having an adequate cash flow to pay 85% of the bills is what will cause a business to fail.

The experts are saying that the hospitality industry will not see a major turn around until the third quarter of 2010. They also say it will not return to significant increases in occupancy rate and increased room rates until about late 2011 or early 2012. That would be expected as long as some other fiasco or catastrophe does not befall us. The cycles of economic affluence do not seem to last as long as they did in the 1950's, 1960's or 1970's. Hopefully that is also true of the economic turndowns.

As in the past, we will begin a new year with a new outlook and with new challenges. Hopefully, it will give us a year of positive outlook and provide a more stable financial future. It probably would be easier if we got rid of those who caused our demise in the first place... but that will never happen.