From www.4hoteliers.com
Travel is changing. There’s a lot of talk about average rates dropping in many markets, but don’t kid yourself, it’s all about value. Packaging is a wonderful way to add to perceived value without sacrificing your rate positioning in the marketplace. Getting more for less is pretty much a human concept. There is still a lot of business out there; we’ll just have to work smarter to get it.
Keeping up will require a greater emphasis on the hotel’s location and perceived value. Hoteliers will finally realize that people travel to get to a particular location and then, with few exceptions, choose a hotel based upon the best-value deal within that location. Hoteliers will ultimately understand that rate alone doesn’t sell rooms, no matter how low; what one gets for that rate is how we determine “value”. Perceived value sells rooms, not rates.
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If you could rent this for the same price with friendly service….
From the Financial Times this weekend:
“On a trip to Italy last July, I stayed at a hotel in Tuscany called Castello del Nero. Opened in 2006, it has featured in many best hotel lists around the world. I was visiting with my family (as a journalist on a complimentary stay) and was dumbfounded. Slow, forgetful service combined with unsatisfactory food left me wondering how the industry had reached a point whereby it could charge €500 a night for a hotel that was sub-standard – aside from the excellent spa. I was told some of the lapses were because of a departing chef. The trouble is, with the luxury hotel industry entering difficult times, there will be few opportunities for such excuses.
Next year will probably see a tough, consumer-led reappraisal of the market. Interestingly, early signs of this shakedown can be seen in the generally robust market for private villa rentals”
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