Angela Overstreet – COO
Austin, TX, August 28, 2015. A year ago, hotels, lodges, and man camps throughout the U.S. shale plays were reaping the benefits of record setting oil exploration and production. With the oil/gas industry’s rapid growth over the past few years came thousands of new jobs, many of which were in rural areas where there was a shortage of lodging options. As the U.S. oil industry embraced innovation to fuel its growth, the lodging industry adapted to meet the dynamic needs for housing workers. “It was a perfect marriage of opportunity and innovation that spurred tremendous economic growth for both the energy and lodging industry” says Angela Overstreet, Chief Operating Officer for oilfieldlodging.com, a full service lodging and crew logistics company out of Austin, TX. “We too embraced innovation to service the lodging needs of our clients and our facility partners. The significant drop in oil prices and the corresponding reduction of jobs, forced our company, hotels, lodges, and man camps to shift out of the comfort zone of high occupancy, impressive revenues, and endless opportunity.”
Over the past year, cities across America like Carlsbad, NM, Pecos, TX, Carrollton, OH, and Monaca, PA like so many other small towns impacted by the oil/gas renaissance, embraced the opening of new hotels to cater to the demand for lodging. Now, many of those new hotels are scrambling to reach occupancy levels to remain profitable. Most hotels, lodges, and man camps throughout the U.S shale plays have been forced to adapt to the slump in oil prices through aggressive competitive rates, expanding their free breakfast menu’s and hours, adding outdoor grill areas, weekly happy hour receptions, laundry services, relaxed reservation cancellation policies, expanded hours for housekeeping, converting single rooms to doubles, and even job site shuttle service for workers. While these changes have helped to attract and retain clients, competitive rates are the key to their survival. According to Overstreet, “In response to our oil/gas clients request for a reduction in their lodging expenses, we’ve had to reach out to our facility partners on multiple occasions and ask for rate reductions of up to 20% in order to retain their business. This is a perfect example of trickledown economics where the oil price decline hits the oil companies, their employees, their product/ service suppliers, and the entire economy. As innovation and new technologies enabled the tremendous growth in the U.S. oil/gas industry, the crude slump has forced product/service suppliers to meet the dynamic impact on their businesses. At oilfieldlodging.com, we cut our teeth primarily servicing the lodging and crew logistics needs of Frac Crews but in January, when the industry wide layoffs began to trickle down to our business, we adapted by offering our cost saving lodging management services to all sectors of the oil/gas industry as well as construction, transportation, environmental, and several other industries. Those efforts have paid off and we’ve been able to grow our business despite the impact the low oil prices have had on the economy. We’ve been swamped with hotels and Hospitality Management companies throughout the U.S. reaching out to us for assistance in helping them put heads on beds and those that have adapted to the dynamic needs of our clients have improved their ability to survive the economic impact of the oil slump.
”The crude realities” of unpredictability in the oil/gas industry will continue to force all related industries to adapt new technologies and think outside the box in order to ride out the storm until oil prices settle at a globally accepted level. The trickle-down economic impact has resulted in a trickle-up impact as those product/service suppliers have helped the oil/gas industry lower their costs which allows them to continue operating and even remain profitable through these challenging economic times.
OilfieldLodging.Com, LLC 907 Ranch Road 620 S. Suite 101 Lakeway TX 78734 512.263.8488