Though average daily rate in U.S. hotels continues to grow year over year, hotel operators are not so eager to increase room prices these days.
STR and Oxford Economics forecast ADR will increase by 1.9 percent this year and 2.2 percent in 2020.
While an increase is usually viewed as a positive, the joy is muted in the hotel industry. STR noted in August that inflation coupled with increasing room supply are outpacing the rise in hotel revenue.
Hotel operators are experiencing what STR calls “an absence of pricing confidence.”
So, you don’t want to increase your room rate but you need to make more money.
How do you do that? You upsell. You offer additional products and services to guests who have already booked at your property.
Think you do not have anything to offer besides a clean room and free breakfast? Think again. Generating extra revenue by upselling is possible no matter the location, type and size of your hotel.
In today’s episode Lodging Leaders talks to experts in upselling in the hospitality industry.
You’ll hear from Geoffrey Toffetti, president and chief marketing officer of Frontline Performance Group, and Jason Bryant, founder and CEO of Nor1.
They talk about the art and science of selling upgrades and when to engage the guest with offers. And they give tips on ways to increase incremental revenue that goes straight to your bottom line.
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.