How the hotel industry is cutting out the mid-tier | ehotelier.com
At the present, many hotels around the world are under intense pressure for profits. No single factor can account for this, but the broad response has been a tightening of budgets as well as a proliferation of new brands with a focus on lifestyle to target the emerging millennial audience. While it’s laudable to see a bolstering of the full-service spectrum of hospitality, this move lacks strategic substance because it fails to address the two key considerations of most hotel purchases – location and price. Instead, we are going to witness a depletion of hotels in mid-tiers with luxury properties thriving on emotional drivers and true branding while all others slowly shift towards a no-frills model.