How Should Hotels Set Room Rates Now and After the Coronavirus Crisis?
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.
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.