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Craig Sullivan

Craig Sullivan is the Founder of the California Lodging Investment Conference [CLIC]. He launched [CLIC] in 2017 to create the only lodging conference focused exclusively on the California hotel market. Craig is recognized as an expert in California hospitality, lodging, investment, and in commercial real estate development. He is a popular Speaker, Panelist, Moderator at the leading national hospitality and investment conferences, and at local CA based CRE conferences.

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Contributor Brief·Craig Sullivan · 1 article
Updated Sep 5, 2023

Labor unrest and travel shifts create structural volatility in hospitality

Sullivan argues that California's hotel market faces unprecedented revenue instability driven by converging structural forces—labor disputes, shifting travel patterns, and external economic headwinds—that cannot be solved through traditional demand management. He contends that hospitality operators must recognize these as systemic, not cyclical, challenges requiring strategic repositioning rather than tactical pricing adjustments.

Multiple headwinds

Labor disputes, travel pattern shifts, macroeconomic factors destabilizing revenues

“Hotel revenue in California rides a rollercoaster due to decreased travel, strikes, other factors.”

Hotel Revenue in California Rides a Rollercoaster

Primary revenue destabilizers in California hospitality market

Labor disputes and strikes1
Shifting travel patterns1
Macroeconomic factors1

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33%Labor disputes
Labor disputes and strikes
Shifting travel patterns
Macroeconomic factors

3 simultaneous pressure zones

Labor, demand, and external forces converging on single market

Unprecedented volatility in the state's hospitality market reshapes operator strategy.

Hotel Revenue in California Rides a Rollercoaster

Multiple headwinds create conditions that defy traditional revenue management playbooks.

Hotel Revenue in California Rides a Rollercoaster

“Decreased travel, labor strikes reshape California hospitality fundamentally.”

Themes:Structural volatility from labor-demand convergenceTravel pattern disruption as permanent market conditionStrategic repositioning beyond cyclical pricing tactics

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