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Traditionally enjoying a symbiotic relationship, U.S. hotels and U.S. domestic airline carriers recorded all-time high revenues in 2018, following all-times highs in 2017. The lockstep nature of the relationship is reinforced by the high correlation between the growth in revenues for both the airline and hotel industry. (Correlation of 0.965) Over the 18 year period, 2001 to 2018 the hotel sector has booked on average $1.24 for every $1 the airline industry has booked.

Comparison in the Growth of Total Domestic Airline Operating Revenue & Total U.S. Hotel Revenue 2001-2018

Source: Bureau of Transportation Statistics & STR. Operating revenues refer to revenues from the performance of air transportation and related incidental services. Includes (1) transport revenue from the carriage of all classes of traffic in scheduled and nonscheduled services, and (2) non-transport revenues consisting of Federal subsidy (where applicable) and revenues for services related to air transportation.

According to STR’s 2019 Host Almanac, total U.S. hotel revenues topped an estimated $218 billion in 2018, an increase of $10 billion or 4.8% on the previous year. This was made up by $165 billion in room revenue, $24 billion food revenue, $8 billion beverage revenue, $7 billion in other F & B revenue, $8 billion other operated revenue and $$6 billion in miscellaneous income.

This compares with total operating revenue for all domestic airline carriers of $173.4 billion in 2018, up 6.7% on the previous year. For the past five years, domestic airline revenue has accounted for just over 70% of total U.S. airline revenue.