The hotel business -- while suffering from the drop in air travel -- actually is doing better than has been reported, with a new marketing focus, fewer layoffs and more optimism in many quarters, a national survey of general managers shows.

Professor Cathy Enz, executive director of the Center for Hospitality Research at Cornell University's School of Hotel Administration, sent a survey via fax to 11,000 general managers (GMs) at hotels across the United States one month after the terrorist attacks; 1,200 replied, most within three days. "We were impressed by the level of participation and quick response," says Enz.

The survey's results showed that GMs at 41 percent of the hotels sampled have successfully altered their marketing tactics to boost room occupancy rates, with 58 percent seeking more regional guests and 34 percent emphasizing local weekend getaways -- both less likely to require plane travel. Twenty-five percent of the sample expected to make no change in staffing levels, 20 percent saw no reduction in staff hours, and 22 percent anticipated no drop in training efforts.

The GMs surveyed also reported fewer cancellations and rebookings of conference groups after Sept. 11 than might have been expected. On average, 17 percent of operators' conference and group bookings were canceled, with 22 percent of the respondents reporting no cancellations at all. A large percentage of conferences were rebooked, but numbers varied widely.

"Clearly the drop in air travel hurt some hotels, such as those in fly-to destinations in the southeastern United States," says Enz. "The good news is many hotels have come up with innovative ways to attract more business."

Overall, two-thirds of the managers said they believed the hotel industry was in a recession, but the majority saw a much rosier future than might be expected -- 60 percent predicted growth by next July-September in both the U.S. economy and local hotel markets. Most deemed tax breaks unlikely. "They are optimistic about the future and are planning to stay the course," says Enz.

RealTime Hotel Reports assisted in the survey. For an ongoing report card on the hospitality industry, see: http://www.hotelschool.com/chr/ or contact Enz at (607) 255-9780.