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Saturday, April 6th, 2019

The middle class in America is disappearing. Hotels have to choose between 2 distinct paths to survive, says the man who invented boutique hotels.

Author:     Katie Warren
Source:     Business Insider
Publication Date:     Apr. 1, 2019, 10:35 AM
 Link: The middle class in America is disappearing. Hotels have to choose between 2 distinct paths to survive, says the man who invented boutique hotels.
Stephan:   I keep hearing neoliberal economists on the cable networks telling everyone the economy is good, unemployment is low, Trump is a winner. Then, when I dig a little deeper, I find this.

  • The middle class in America is disappearing, and hotels need to adapt.
    Credit: Feifei Cui-Paoluzzo / Getty

    The middle class is disappearing in the United States.

  • Ian Schrager, the legendary hotelier credited with inventing boutique hotels, says hotels will make two major changes to keep up with the changing demographics.
  • In the US, “you have the 1%, and then you have everybody else, with a declining middle class,” Schrager told Business Insider. “And I see hotels following the same thing.”
  • Hotels will become either super luxurious and expensive to cater to the 1%, or more value-oriented, with “nothing in the middle,” Schrager said.

The middle class in the US is on the decline.

Middle-income Americans represented about 61% of the country in 1971, but only 52% of American adults were classified as middle-income in 2016, according to Pew Research Center data.

And only 44% of Americans said they considered themselves in […]

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