Planning Out of the Downturn: Key strategies for long term success
By Paul van Meerendonk Director of Advisory Services, IDeaS Revenue Solutions | November 17, 2014
Following a tumultuous 12 months in the hotel and hospitality industry, things finally seem to be improving (or at least levelling out) as guest numbers grow and RevPar begins to stabilise. Importantly though, hoteliers are entering the crucial stage of adapting their 2010 strategies to prepare for any market rebound or sustained improvement in operating conditions.
While many hoteliers were operating under a "busy hotel is a successful hotel" mantra throughout the economic downturn, which sacrificed guest revenue - it is important to note that 2010 will not purely be another year of doom and gloom.
According to a survey of more than 1400 business travel managers at the recent Business Travel and Meeting Show in the UK, 27 per cent of travel budgets look to be increased this year and more than a third of business travel buyers will actually increase their amount of travel in 2010.(1)
Smart hoteliers need to recognize new opportunities now and as shell shocked Executive Teams around the world sit down and finalize their strategies for the coming 12-18 months, they need to ask themselves - how will they avoid making 2010 the year of missed opportunities?
While significant losses were sustained in many of the large hotels around the world in 2009, it's important now for savvy hotel owners to throw themselves into new opportunities and change their discounting habits to emphasize value over price.
A recent report from global management and consulting firm, Accenture, contended that mass-discounting during the Global Financial Crisis had hindered rather than helped the hotel industry during the weaker business conditions, saying that: