In this article, we shall discuss the top 20 most unfriendly states in the US. To skip our detailed analysis of the global hotel industry in 2023, go directly and see Top 10 Most Unfriendly States in the US.
In a market atmosphere where businesses are navigating increased pressure on resources and margins, hospitality companies like Marriot International Inc. (NYSE:MAR), Hilton Grand Vacations Inc. (NYSE:HGV), and DiamondRock Hospitality Company (NYSE:DRH) have seen some semblance of recovery post the COVID-19 pandemic in 2019, even in some of the most unfriendly states in the US. However, according to a report by Deloitte, the industry is set to face other disruptions in 2024 owing to inflationary pressures and massive geopolitical turbulence in Europe and the Middle-East. Lack of economic growth, labor shortages, rising costs, the overall impediments in raising prices, and challenges with respect to achieving net-zero carbon emissions are key risks causing disruption for the industry in 2024. According to a report by PwC, with the depreciation in leisure demand, occupancy levels have plummeted in 2023 when compared with 2022 levels, and are expected to remain low well into Q1 2024. Although room rate growth was a significant contributor in the initial recovery for US hotels, the industry has fallen below inflationary growth levels in Q4 2023. However, ADR growth is expected to marginally increase the declining inflation level in 2024.
Hotel demand has depreciated in the last quarter of 2023 in some of the most unfriendly states in the US owing to the Fed’s continued increase in its policy rate, persistent decline in pubic markets since August 2023, and the current Israel-Hamas conflict in the Middle East. Despite these factors, the report projects annual occupancy for US hotels to increase to more than 63%. Average room rates are expected to surge by more than 4.5% in 2024, with resultant RevPAR up by more than 6%, which is 114% of pre-pandemic levels on a nominal dollar basis. As 2024 approaches, the outlook for midweek travel remains unclear with many hotel companies altering their business travel policies in a bid to restrict corporate budgets as well as secure sustainability objectives. With occupancy levels expected to remain on the low-end in 2024, performance gains are largely expected entirely from ADR, with an expected increase in RevPAR of 2.7% year-over-year, which is 17% above pre-pandemic levels. To read more on the hotel industry in 2023, check out our article on the 30 Most Luxurious Hotels in the World.
Securing Success in Hospitality Recruitment: An Overview
The lifting of travel restrictions and the global resurgence of the tourism industry has brought about a massive challenge for top players in the hotel industry like Marriot International Inc. (NYSE:MAR), Hilton Grand Vacations Inc. (NYSE:HGV), and DiamondRock Hospitality Company (NYSE:DRH) in some of the most unfriendly states in the US. According to a report by McKinsey, more than 705 of all personnel in the hospitality industry in the US and the UK were laid off during the pandemic and employers are now struggling to attract labor back into the industry. Hospitality workers, who where furloughed during the pandemic, used the time to recalibrate their priorities, with a huge percentage of workers finding employment in more flexible and less demanding industries. To read more on labor shortages affecting travel and tourism in 2023, check out our article on 20 Least Productive States in the US.
Furthermore, a huge proportion of workers have found hybrid models of employment with better salaries and are reluctant to revert to jobs in the hospitality industry, especially in roles which make up a significant portion of the hospitality and travel workforce like waiting tables, cleaning rooms, and checking in guests. Hence, in bid to secure more talent for the industry, McKinsey highlights key steps hospitality companies need to take, especially in some of the most unfriendly states in the US. These steps include realizing the impact of digitization in a changing hospitality landscape, affording increased flexibility to employees, diversifying job descriptions in a bid to make them more multifaceted, giving utmost priority to ESG imperatives, not only in daily operations but also in hiring practices, and lastly, maintaining a high bar for hygiene. To adapt to these five shifts, employers need to follow what McKinsey terms as the ACE method, namely analyzing talent suitability using digital capacity, clearly defining and communicating job expectations and possible career paths, and empowering the HR department within the organization.
Integrating Advanced Analytics in Hospitality: An Analysis
According to another report by McKinsey, innovations in digital technologies have catalyzed persistent disruptions in the travel industry. With mobile technologies bagging the limelight as consumer behavior shifts at a remarkable pace towards increased research and bookings through smartphone applications. According to a study conducted by Expedia Media Solutions, US consumers who book travel accommodations online tend to spend an increased amount of time engaging with travel content on their cellphones rather than their desktops. The data obtained through the rampant global use of digital technologies is extremely valuable for travel companies.
Top hotel companies like Marriot International Inc. (NYSE:MAR), Hilton Grand Vacations Inc. (NYSE:HGV), and DiamondRock Hospitality Company (NYSE:DRH) are still in the early stages to exploring the potential of advanced analytics and building capabilities which are critical in capturing the complete potential of this data. One of the most lucrative opportunities that falls within the scope of advanced analytics is AI, which has huge upside for each sector within the tourism and transportation industries. As these areas undergo further development and build capabilities in machine learning, natural language processing, and video recognition, AI capabilities are expected to reach a point wherein travel companies are well-positioned to rake in substantial revenue through the use of AI at scale in day-to-day operations, even in some of the most unfriendly states in the US. Some opportunities arising from these developments in advanced analytics and AI are the possibility to radical personalization through predictive analytics, integration for customized on-property product recommendations, enhancement of customer service through natural-language processing, and extending the travel experience through virtual assistants that facilitate connections to the guests of IoT.
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Our Methodology
To compile our list of the top 20 most unfriendly states in the U.S, we decided to undertake a consensus-based approach using a diverse variety of credible sources (1, 2, 3, 4, 5, 6). We then shortlisted more than 30 states which appeared most frequently during our research. Since unfriendliness is an incredibly multifaceted and complex phenomenon, we established a three-pronged criteria to measure the level of unfriendliness in each state; the criteria is premised on the frequency of rude tourist interactions (20 points), cultural sensitivity (15 points), and crime (10 points). We then proceeded to award each state a cumulative score according to the aforementioned criteria and selected 20 states which scored the highest points. Subsequently, we ranked each entry based on the total points scored, from lowest to highest. Where there was a tie, we broke it based on the frequency of rude tourist interactions. You can also read on some of the rudest cities in the United States in our list of The World’s 30 Unfriendliest Cities Heading into 2024.
To sum it up, we ranked the top 20 most unfriendly states in the U.S based on their cumulative scores, using a consensus methodology. By the way, Insider Monkey is an investing website that tracks the movements of corporate insiders and hedge funds. By using a similar consensus approach, we identify the best stock picks of more than 900 hedge funds investing in US stocks. The top 10 consensus stock picks of hedge funds outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here). Whether you are a beginner investor or professional one looking for the best stocks to buy, you can benefit from the wisdom of hedge funds and corporate insiders.
Top 20 Most Unfriendly States in the U.S.
20. Alaska
Total Score: 16
Alaska is known to be one of the most unfriendly states in the United States, primarily due to a high cultural sensitivity amongst the population. The residents of the state have been reported to be hostile towards service workers and tourists.
19. North Dakota
Total Score: 17
In North Dakota, people are known to be rude and hostile by nature. The citizens of the state are always known to voice their opinions, even if the opinions are negative and unwelcoming.
18. Kansas
Total Score: 19
Many tourists believe that the residents of Kansas are unwelcoming towards strangers and are not known to be particularly helpful to tourists.
17. Virginia
Total Score: 19
The residents of Virginia are widely perceived to be unapproachable and unwelcoming. Tourists have frequently reported falling victim to petty crime, leading to the state making our list of the most unfriendly states in the US.
16. Washington
Total Score: 22
Washington is one of the most unfriendly states in the United States. Residents of Washington are known for being reserved and keeping to themselves, a behavior which is commonly perceived to be unwelcoming.
15. Wyoming
Total Score: 22
Even though Wyoming is a small state, its residents are widely perceived to be rude. This is primarily because the residents are reserved, tend to keep to themselves, and do not like interacting with strangers.
14. Ohio
Total Score: 24
Crime rates in Ohio are currently on the upsurge. Many tourists in the state have lodged complaints with authorities, citing instances of pickpocketing.
13. South Dakota
Total Score: 26
Even though South Dakota attracts many tourists, it is thought to be one of the most unfriendly states in the US based on the number of unwelcoming interactions tourists have reported.
12. Michigan
Total Score: 26
With increasing crime rates, Michigan is known to be extremely unfriendly. Some of the most common crimes in the state include robbery, rape, and drug offenses. The people of Michigan are also widely perceived to be exceedingly unfriendly and impolite.
11. West Virginia
Total Score: 31
West Virginia is known to be increasingly sensitive to cultural diversity, making it one of the most unfriendly states in the US. The state has a surging petty crime rate and a dismal hospitality infrastructure.
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Disclosure: None. 10 Most Unfriendly States in the US is originally published on Insider Monkey.