Our hotel expert review this week focuses on the recent report that demand will rise contrasted by the expectation that more room rate discounts will prevail this year as well. Is it possible the two can occur and overall room revenues will continue to rise more than just modestly? According to Tim Hart, executive vice president, business intelligence solutions, TravelClick: “As we enter 2012, TravelClick data shows a ‘slow and steady’ increase in hotel performance,” “The business travel segment continues to be strong and group business shows slow but positive occupancy gains. Overall occupancy has consistently improved over the past 26 consecutive months and as demand begins to plateau, hotels need to increase rates to leverage increasing demand and maximize revenue.” Read more here on what hotel expert statistics and markets drive the growth. In its Trend Watch for 2012, Hotel Interactive suggests consumer discounts will continue as secondary markets lag behind the room rate growth in major cities. According to Editor-in-Chief Glenn Hausmann: “For now it looks as if consumers are still in charge in the vast majority of markets. But that’s because hoteliers have ceded control. We’re not talking about you New York, San Francisco, et al. The market bifurcation between the haves and have nots will continue to become exacerbated as big market cities continue to pull in top ADRs while smaller markets will continue to lag.” Read more here on other trends to consider in your hotel planning. Do your hotel plans include room rate increases for 2012? If so, what customer type will be targeted (i.e. business traveler) and what percentage of increase do you expect to get? Please share your commentary with this hotel expert and our readers below.
Perry Group
Hotel & Restaurant Experts For The Hospitality Industry
