A recent study by PFK Hospitality Research has shown that a decrease in Airline Capacity will have a negative effect on Hotel Bookings in the United States.

“Many industry participants have been speculating about the spillover effect a deteriorating airline industry will have on hotels,” said Mark Woodworth, president of PKF Hospitality Research. “Our research measured the historical relationship between these two components of the travel industry. This allowed us to project just how much business hotels stand to lose given the cutbacks in capacity announced by the major airlines.”

Woodworth later concluded that if the cutbacks are as severe as predicted, a possible $4.3 billion industry loss, hotels may have to make drastic cutbacks on staff and other areas.

Read the entire report here.

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