How Should Hotels Set Room Rates Now and After the Coronavirus Crisis?
Photo Credit: Shown here is The Chatwal, a Luxury Collection Hotel, in New York City. Many hoteliers face tough decisions about how to manage their room-rate setting during the coronavirus crisis. Marriott International
Skift Take
Granted, this crisis is unprecedented. Yet hotels worldwide can learn lessons from how hotels have faced regional shutdowns, such as in Asia-Pacific in recent months, in Las Vegas after the shooting rampage, and elsewhere after hurricanes and financial crises. Managing room rates and marketing offers is critical to making the most of a rebound in demand.
It may seem off-topic to ask experts for advice on how hotels should be setting their room rates right now. Thousands of hotels are closing in Europe and the U.S., and the goal for many properties is to survive, as the CEO of Marriott warned in a video.
Yet most hotels will re-open someday. Most hotels will also continue to accept reservations for stays many months from now. So it's urgent to price those future stays smartly.
Yes, the crisis is unprecedented for being global. But whether it was past pandemics, mass shootings, hurricanes, or financial crashes, hotel leaders in various parts of the world have learned lessons that are now relevant globally. One takeaway on which everyone seems to agree: Don't rush to cut too quickly or too deeply.
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Take Heart From Asia "Asia-Pacific learned a lot by going through the SARS experience, and as a result, most had a plan for fa
