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Cities with Rail-to-Airport Connection make better Hotel Revenue

According to a joint research study revealed by the American Public Transportation Association (APTA) and U.S. Travel Association, cities with direct rail to airport connectivity usually earns higher hotel revenues than cities without a rail to airport connectivity. The hotels situated in close proximity of these cities usually earn about 11% more revenue per room than cities with the rail-to airport facility.

The price differentiations in tariff rates of such hotels are mainly due to the efficiency options of ease of transportation and easy accessibility for overseas visitors. The study further reveals that the increased revenue of such hotels generates an amount of nearly $313 million per year in rail-airport connected cities. Hence, making these rail-cities a significant economy booster for the overall fiscal growth of the nation and boosting revenues for the travel and hospitality industries as well.   

With easy connectivity options, business as well as leisure travelers finds it effortless to travel smoothly within city destinations without hassle. Moreover according to U.S. Travel association CEO, Roger Dow, the availability of rail-conveyance option through airport terminals not only enhances the ‘attractiveness of city destinations’ but also increases the ‘performance of hotel properties’ located in close proximity to the rail stations.    

Figures reveal that hotel properties located within one fourth mile of rail stations performed the best in terms of providing amenities and quality services to its guests compared to other close by hotels. These hotels also have shown an increased percentage of daily-room revenue generation of 48.6 % along with a 12.5% rise in occupancy rates. Some of the major rail cities across US include the following: Atlanta, Washington DC, Chicago, Portland, Minneapolis and San Francisco.  

The survey also reveals that overseas business travelers account for 14.6% of total business travel spending thereby generating an amount of $38 billion to the nation’s total GDP. The study also states that cities with advanced and developed ‘intermodal infrastructures’ are more preferable destinations for global business conventions, meetings and events compared to non-intermodal cities with less connectivity.

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