It’s often said the U.S. hotel industry is a street-corner business. With that point of view, it may not take much for a hotel operator to panic and set off a price war on your block.
The industry fell victim to mindless discounting in the days immediately after 9/11 and during the depth of the Great Recession.
Today’s hotel owners and operators like to think they’re smarter than that.
Over the past decade, revenue management – the science of smart pricing – has become a standard practice.
At the same time, technology providers have created automated programs that help properties determine the right price for the right guest at the right time. And hotels have a long list of online channels where they can advertise rate and convert browsers to bookers.
As the industry begins to see a slowdown in business performance, Lodging Leaders explores how hoteliers should be pricing now and in the near future.
We interview several specialists and technology innovators who focus on nothing but revenue management for hotels.
They share what to do if a hotel in your market starts to discounts rates; how to use online booking channels to generate more business; how far out to plan your revenue strategy; and what tactics to deploy to optimize profit.
Resources and Links
Leaders at AAHOA and the American Hotel & Lodging Association say time is running out for the nation’s 57,000 hotels in need of federal government financial relief as the coronavirus pandemic in the U.S. heads into its eighth month. Cecil Staton, president and CEO of AAHOA, and Chip Rogers, president and CEO of AHLA, are tirelessly rallying the industry to implore Congress to act soon before half of the country’s hotels go into foreclosure. This report is part of our ongoing coverage of the coronavirus crisis and its impact on the hotel industry.
With hotel occupancies hovering around an average of 50 percent, owners and operators are seeking new ways to generate revenue beyond traditional overnight stays. One solution in the works is day use of hotel rooms. Hotel companies such as Red Roof, Hyatt Hotels Corp. and Hilton are promoting the practice during the COVID-19 pandemic. Ahead of the curve is HotelsbyDay.com, a day-use booking platform that is marketing hotels as the new office space. Long Live Lodging explores the unconventional use of hotels and how owners and operators can position their properties to attract day users. This is part of our ongoing coverage of the coronavirus crisis and its impact on the hotel industry.