UNH Researchers Create New Index to Assist Lodging Industry with Economic Planning

UNH Researchers Create New Index to Assist Lodging Industry with Economic Planning

Oct 24, 2012

A new tool for short- and long-range economic planning in the lodging industry has been created by UNH researchers E. Hachemi Aliouche, associate professor of hospitality management and associate director of the Rosenberg International Franchise Center; Nelson Barber, associate professor of hospitality management; and Raymond Goodman Jr., professor emeritus of hospitality management.

The Lodging Executive Sentiment Index (LESI) is based on a monthly survey of 20 lodging executives representing companies with more than 2.5 million hotel rooms across lodging segments and geographic regions of the United States -- more than 55 percent of all U.S. rooms. Executives are asked about the present and future conditions of the market. Executives also are asked to report their outlook during the next 12 months about room reservations and employment practices, such as an increase or decrease of their nonmanagerial work force.

When used in conjunction with the LESI, the predictive power and the forecast horizon of well-established indicators can be significantly improved.

The importance of LESI is that it will provide lodging executives and managers, as well as executives in other industries, an early glimpse at the direction of the overall lodging industry beyond their own properties and markets, specifically retail sales, employment, interest rates, and stock prices, thereby helping them in operational and planning decisions,” Barber said.

Barber will oversee the index and conduct quarterly analyses, which will be available to the public at http://wsbe.unh.edu/LESI.

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