Findings in two recent studies indicate that challenges are ahead for the hotel industry.
Reports from Smith Travel Research and Cornell University's Center for Hospitality Research show that the demand for rooms is on the decline and the amount of rooms available are increasing. The challenges for the industry may include price wars, increased competition, and difficulties with contract renegotiations.
With a decrease in travel expected through 2010, the continued pressures of profitability will force some hotel operators to rethink their strategy and increase their marketing efforts.
Here are a few suggestions for hotel managers who strive to exceed the projected 55.1% average occupancy rate in 2010:
- develop beneficial partnerships
- improve loyalty programs
- keep an eye on new leisure or travel trends
Try your best not to get caught up in the price war. Offer good value and give your guests more than they expected.
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