During the last global financial crisis, the hotel industry cut rates aggressively. Attendees at this year’s Revenue Strategy Forum wondered, when the next recession comes, can hotels be braver this time around?
It’s no secret that hotel operating costs are on the rise, in many cases at an even higher clip than revenue. Hoteliers are pointing to inflated digital marketing costs, and with the emergence of new distribution channels like Google, TripAdvisor and Facebook, the cost of acquiring guests is higher than ever before.
As hotel sales and revenue management teams engage in corporate rate negotiations this fall, they might find themselves at a disadvantage for the first time in a few years. To prevail, or at least to maintain their market shares, hotel negotiators need to stress the value they can offer that’s not available at their competitors.