United Kingdom
United States
Asia Pacific
Cutting room rates not profitable
Hotels that attempt to boost occupancy by lowering room rates will not increase revenues according to a recent report.
The report found that although discounting rates does lead to increased occupancy, hotels that maintain their price structure experience higher revenues than the competitors that discount rates.
“These results suggest a preferred pricing strategy of holding rates constant when competitors are discounting, or even raising prices to a small degree”, said an author of the report, Professor Cathy Enz.
“By raising prices above the competition, a hotel will lose occupancy but make up for that loss with higher RevPAR. By offering a lower relative price, on the other hand, a hotel will gain occupancy but its RevPAR performance will be lower than that of its competitive set.”
Ms Enz was part of a team from The Centre for Hospitality Research at the US-based Cornell School of Hotel Administration. The report is available online at http://www.hotelschool.cornell.edu/chr/. It was carried out using data from 6,000 hotels over a two-year period.
Report by Ginny McGrath
Ginny McGrath
Tony from Gatto’s Pizza on Columbus’s Unique Pizza Trail
Sophia Hyder Hock on Global Social Inclusion in Tourism
Sustainable Tourism: Don Welsh on Community Values and Global Collaboration
Jane Cunningham: Enhancing European Engagement in Tourism
Kristin Dunne: Navigating Destination Strategy
Revolutionizing Mobile Connectivity: Boris Bijlstra on HUBBY eSIM
Capturing Glasgow’s Vibrancy: An Interview with Susan Deighan, Chief Executive of Glasgow Life
Lebua Hotel & Resorts: Rajan Khurana on Hospitality and Bangkok’s Charms
Sustainable Tourism and Growth: Insights from Chiravadee Khunsub from Tourism Authority of Thailand
Revolutionizing Travel: SmartSIM USA’s Dale Takio Unveils the Power of E Sims
TravelMole Interview with Hishan Singhawansa, Deputy CEO of Cinnamon Hotels & Resorts, Sri Lanka
Unveiling the Essence of Magari Tours: A Dive into Authentic Italian Experiences
EU airports bring back 100ml liquid rule
British Airways passengers endure 11-hour 'flight to nowhere'
CLIA: Anti-cruise demos could cause itinerary changes in Europe
Gatwick braces for strike
Co-pilot faints, easyJet flight issues ‘red alert’