While the lodging industry appears to be in a full recovery, experts on hotel management and room revenue yields have focused back on higher rates as part of their hotel revenue management strategies. Given that new hotel development has either stopped or slowed down significantly and business travel is on the increase in many U.S. cities, higher demand for existing room inventories is allowing hoteliers to raise prices once again. According to the recent forecast by STR (Smith Travel Research), the hotel data analyst firm predicts Average Room Rates will grow 3.7% and 4.4% in 2012 and 2013respectively. In a separate report by another group of experts on hotel management and room reservation systems, they say: “If you track back to the early part of the recovery, it was demand and bookings that were stealing the show,” said Julie Parodi, senior director of strategic planning and analysis with Pegasus Solutions and editor of The Pegasus View. “Now booking growth has leveled off, but yet here we go … now rate is slowly setting new marginal records.” In another study by hotel consultant and data analyst PKF Hospitality Research, the firm projects: “Hotel average room rates will grow over 3% and the corresponding hotel room revenues are expected to rise approximately 7% in 2012.” If you are a hotel owner or hospitality management services company and based on these recent findings, now is the time to review room rate pricing at least during the shoulder and peak seasons going forward. Although demand may still slow by some predictions, lack of new hotel rooms supply means hotel occupancies should still grow. Also, if you need a preliminary review on room rate strategies by our experts on hotel management, please submit a no-cost request for consultation below. We will contact you shortly.
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