Hospitality Consulting Update from the Mgmt Experts at PGI 03-28-11

This past week there were stories that we follow as part of our hospitality consulting practice discussing room rates, ADA reservations compliance and higher airfares. The prices rises are not a surprise as much as the lack of industry awareness on these ADA issues. Here is some of that commentary and our take on it: Hotel Management Consultant- In Hospitality World Network “The average cost of a hotel room around the world rose 2 percent in 2010, according to the Hotels.com Hotel Price Index. The increase was the first time that the average hotel room price rose year-on-year since 2007. However, prices fell so low during 2009 after a 13percent drop that despite last year’s modest increase, the average price of a room is still the same now as it was in 2004.” If you are a hotel property management company that has locations in Asian countries that are deciding on price increases, the article also talks about that part of the world has seen much higher rate jumps than here in the USA. – There was also an AMEX study published that talks about airfares will reach an all-time high soon. It says in part that “Air fares took a hike in 2010 – a 7% hike, according to the latest Business Travel Monitor from American Express Business Travel. It also talks about that airfare increases will continue in 2011 and given the state of the oil markets right now and the demand from countries, such as China. This may impact hotel occupancies and the ability to raise room rates substantially this year or next from a hospitality consulting perspective. – On a separate note, the time to act is now because federal regulations are about to expire regarding compliance with the ADA on issues relating to room reservation systems. “If not, the clock is ticking to when that information will have to be available, or a hotel risks being in violation of the Americans with Disabilities Act, according to J. Aaron McCullough, attorney and primary at ADAConsult.com.” The article also refers to the March 31, 2011 deadline for the regulation to become enforceable. A hotel management consultant and their web site developer evaluating changes in the room reservation portals should take this into account. If you are a hotel owner or management services firm, will your room rates increase in 2010 and 2011 and if so by what percentage? Secondly, what from a hospitality consulting viewpoint is important to consider regarding the ADA reservation system compliance at your hotel(s)??