The travel industry has been buzzing with reports about rising occupancy rates and planned room-rate hikes since the beginning of 2011. The news finally seems to be almost unanimously good for the industry for the first time since the economic recession started.

Companies that focus on leisure travel, however, are seeing slower growth than companies that rely on business travel for profits. In light of corporations like Starwood promising rate hikes in 2011, investors seem less than impressed with hotel chains showing steady but slow growth.

Wyndham Worldwide recently reported fourth-quarter earnings of $78 million, or 43 cents a share, a $5 million increase from the previous year. Shares fell 2 percent in response to the reported earnings. According to analysts, the news was only as good as expected, which wasn’t good enough to impress or even satisfy investors.

Wyndham CEO Stephen Holmes pointed out in an interview with Reuters this month, “Business travel falls off harder and comes back more quickly.”

About 80 percent of Wyndham’s revenue comes from its timeshare and vacation rentals businesses, sectors that are just beginning to see signs of recovery this year. It’s estimated that business travelers make up only about one-third of customers of Wyndham’s hotel division, which includes Super 8 and Days Inn franchises.

Wyndham CFO Tom Conforti said that increased occupancy contributed to higher revenue per available room for the fourth-quarter. Conforti doesn’t expect Wyndham to begin raising rates until 2012.

What does that mean for consumers?

You might save money in 2011 booking with a Wyndham property until its numbers catch up with everyone else’s.

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Travel is Growing Again

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