Revenue per available room will decline 0.4 percent in 2003, marking the first time since the 1961 to 1963 period that the industry will experience a third consecutive year of nominal RevPAR declines, according to PricewaterhouseCoopers forecasts. There will be no recovery of real RevPAR to previous peak within the next 12 quarters, the company said.
"As we previously forecast, meetings and conventions will continue to hold up well," said Bjorn Hanson, global industry leader for PricewaterhouseCoopers Hospitality & Leisure Practice. "Leisure travel will continue to hold up, but the industry will see more discounting to sustain this. And there are some signs of some mild recovery in individual business travel in mid to late September.