Hoteliers strategize to address downward pressure
Some are leaning on maintaining rates while others choose a more aggressive pricing strategy or focus on generating an optimal mix of business
Hotel demand across the board has been falling short of expectations in 2023, according to hoteliers, but they are hoping that a rise in business and group travel will help soften the landing of lower demand during the shoulder months.
Key takeaways
- Leisure demand will normalize to historical seasonal patterns. The impact in the fall will be unique and market specific as group demand continues to rebound along with business travel;
- The transition from the high season of leisure demand during the U.S. summer to the inevitable decline in demand this fall will have a similar impact as it did in the past;
- While forecasting today presents unparalleled challenges, apparent declines in travel-related optimism might simply reflect a recalibration for some from prior overly hopeful projections.
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