This article talks about the impact of the supply and demand law on the hotel rates.
One can see that at the end of 2009, the economic crisis is not over as the hotel rates have decreased between 5 and 15 % compared to December last year. Hotels are now making efforts to adjust their rates so as to still attract customers. In United Kingdom, prices have been decreased (in Edinburgh by 15%, in Birmingham by 19% etc...) even if this country remains the top country of high hotel rates.
However area of growths for hotel rates are still found with special monthly events in cities offering Christmas markets or cities organizing unique events like Copenhagen for the World Climate Conference (hotels increasing their rates up to 21%). In these cases, they are never enough hotels in the cities to cater for the demand from visitors from all over the world.
Hotel rates continue to fall in December and it might be the same in the first quarter 2010. Indeed, it seems inevitable for hoteliers to decrease their rates in order to still keep a certain occupancy rate and to try to maintain more or less their turnover.
RépondreSupprimerNevertheless, the main question will be : "how to enhance this exceptional rates to the original rates at the end of the crisis". Actually, it will be very difficult and the major problem will be facing the guests. Thus, lower the rates is a thing but hoteliers shouldn't drop too low or they will have a very hard time after to reach the primary level.
Moreover, changing rates too often make a hotel looses its credibility.
Good start but a description of info in the article - looking for your analysis or opinion. Need to use text links, not see the http.
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