By Rita Machado, VP, Sales & Marketing, Great Hotels of the World
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To Decrease or not to Decrease Hotel ADR? Photo: GuestCentric Systems
Following the economic fallout of 2020, many hotels and other tourism businesses have rushed to lower prices in an effort to stimulate demand. In this article, I analyze the competitive challenges of hotel ADR in the current climate. We also explore what Hotels can do to maintain price and deliver value ahead of the upturn that is fast approaching.
The Competitive Challenges of Hotel ADR in the Current Climate
The crisis exerted sudden and unprecedented disparities between supply and demand across all hotels worldwide. Sharp drops in demand, excess capacity, and heightened price sensitivity are converging to drive down prices and destroy value.