Demand may be down, but that doesn’t mean you should discount. Guests want value and here’s how you can give it to them and maintain profits.
Friday, November 14, 2008 - Glenn Haussman
Value is king, consumers are saying. And this new ideal has the potential to shake up the way hoteliers need to think about the leisure side of their business. It’s a trend that’s been slowly emerging during the past couple of years, but now a jittery economy is pushing travel buyers into creating this rising new normal.
Fortunately, value doesn’t necessarily mean cheap. So operators that utilize this trend to their benefit have the opportunity to maintain market share even as demand slips. It’s also a great way to protect rate integrity. That way when the market does return it’ll be easier to push rates.
The concept boils down to this: Give consumers more for their basic room rate, or create pricing packages that gives your potential customer a good sense of how much their total spend will be when they’re staying at your hotel.
Friday, November 14, 2008 - Glenn Haussman
Value is king, consumers are saying. And this new ideal has the potential to shake up the way hoteliers need to think about the leisure side of their business. It’s a trend that’s been slowly emerging during the past couple of years, but now a jittery economy is pushing travel buyers into creating this rising new normal.
Fortunately, value doesn’t necessarily mean cheap. So operators that utilize this trend to their benefit have the opportunity to maintain market share even as demand slips. It’s also a great way to protect rate integrity. That way when the market does return it’ll be easier to push rates.
The concept boils down to this: Give consumers more for their basic room rate, or create pricing packages that gives your potential customer a good sense of how much their total spend will be when they’re staying at your hotel.
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