How to manage revenue in a pent-up demand era?
— 20 experts shared their view
Considering the unprecedented global travel disruption and performance declines we've endured; hoteliers finally have something to look forward to. The world has spent the last 18 months dreaming about travel, but not actually going anywhere. Increasing vaccination rates combined with relaxed travel restrictions are bringing travel back… with a vengeance. Most agree that the worst is behind us.
But so far, this pent-up demand or "revenge" travel is different. Driven almost entirely by domestic leisure demand, the patterns have changed. Some premium locations are already exceeding 2019 pre-COVID levels, while hotels just a few blocks away are still struggling. Hotels that targeted the corporate, international, or group segments are reinventing themselves, with mixed success.
Considering the unique nature of the recovery, what should hoteliers do to optimize and manage COVID's pent-up demand?
Revenge travel presents an opportunity for hoteliers to offer new or different experiences and packages—not only with the intention of generating more revenues from existing clients but also to attract different customers who could eventually become loyal clients and shift your business mix.
People's values have changed in many ways since 2019. They are looking for different experiences, ways to share more with family and friends, or simply enjoy life to the fullest. But pandemic-driven fears and uncertainty still weigh heavily on all their travel choices.
As we got used to being locked down, we also got used to shopping online, food delivery, home exercise, short-distance traveling and many other behaviours hoteliers want to understand so they can offer more variety in their services. These offerings could include partnerships with local restaurants or venues to offer catering services for client events or ensuring they can offer different daily menu options for clients planning longer stays.
Come what may, this is the time to review and update your in-room dining options and prices or the SPA services menu and others that will help you build a unique, safe, and profitable experience for your clients.