How the Game Changes

In the midst of a recession, like most industries, hoteliers change their strategies to fill rooms. When times are good, there are more customers than available rooms and we get to play mathematical games and take risks with restrictions and rates in an attempt to maximize our revenue. More time is spent finding the best customer, but when times are not so good (now) we find ourselves to be far less picky and eager to settle for any customer. We become much more concerned about the prospect of having an empty hotel and we ask, "where can I find a guest to rent this room?".

Where do we look? Our competitors. We look at our direct competitors, but that's nothing unique - we do that even when times are good. Moreover, we look to steal business that we typically wouldn't target. For example, a Marriott might start pricing their discounts and group rates to compete with a Holiday Inn. They might also look to steal customers from the Ritz Carlton - typically that business may be considered out of thier league, but budget cuts might make that Marriott more attractive for high-end travelers seeking to save a buck.

The point is this: for travel managers, meeting planners and group travel coordinators out there looking for an upgrade to the next tier of accommodations - now is a good time to make that switch. For those who enjoy luxury properties, you can trim costs but still offer very quality accommodations for your executives. For individuals - the same applies. Government employee travelers may find this particularly true - many hotels that don't typically offer per diem have had a change of heart. So, go, take a trip and enjoy your stay.