Skip to content

Search

Latest Stories

Article lays out ‘Psychology of pricing’ in a crisis

Tips include avoiding the urge to cut rates to keep up with others

THE COVID-19 PANDEMIC has hoteliers scrambling for whatever business they can get. Part of this is effort is pricing rooms to attract what travelers are still out there while covering as much of the hotel’s costs as possible, if not turn a profit.

There’s a certain mindset needed to approach this task, according to the article “Pricing Psychology in Challenging Times” by Kaitlin Dunn with the Hospitality Sales and Marketing Association International based on a webinar with Carter Wilson, senior vice president of consulting and analytics at STR.


It boils down to four basic tips that hoteliers should bear in mind considering the industry’s continuing downward slide.

  1. Pricing wars are bad. During the 2008 recession, Chicago-area hotels began slashing their rates, Wilson said in the webinar. STR found that on average in a comp set of four, after a first hotel reduced its rate, the second dropped its rate 26 days later and in 130 days the last hotel in the set dropped its rates. The first hotels to slash rates lost more revenue, but the last lost more occupancy. “It’s a pick-your-poison situation,” Wilson said.
  2. Where you are and who you serve matters. Economy and midscale hotels don’t follow each other as closely in cutting rates while upper upscale and luxury hotels follow each other more closely. Downtown hotels also follow each other more closely than suburban hotels.
  3. Keep rates close to normal. Hotels that tried to hold their rate within 10 percent of normal during the 2008 recession lost occupancy but had a less significant RevPAR loss overall.
  4. Disasters are like snowflakes. While hotels lost between 20 and 25 percent RevPAR in the 2009 took an average of five years to return to normal. However the current pandemic-generated downturn is very different and the effects could last a while or, as in previous outbreaks like Ebola and SARS, bounce back within six months.

More for you

Choice Hotels campaigns

Choice launches campaigns for extended-stay brands

Summary:

  • Choice launched two campaigns to boost bookings across its four extended-stay brands.
  • Based on guest feedback, the campaigns focus on efficiency, cleanliness, value and flexibility.
  • They will run through 2026 across social media, Connected TV, digital display and online video.

CHOICE HOTELS INTERNATIONAL launched two marketing campaigns to increase brand awareness and bookings across its four extended-stay brands. The "Stay in Your Rhythm" campaign promotes all four brands by showing how guests can maintain daily routines, while "The WoodSpring Way" highlights the service WoodSpring Suites staff provide.

Keep ReadingShow less
Hotel industry leaders unite at AHLA Summit to support trafficking survivors
Photo credit: AHLA Foundation

AHLA Foundation hosts human trafficking summit

Summary:

  • AHLA Foundation held its No Room for Trafficking Summit and announced Survivor Fund grantees.
  • The summit featured expert panels and sessions on survivor employment and trafficking prevention.
  • Since 2023, the program has awarded more than $2.35 million to 27 organizations.

AHLA FOUNDATION RECENTLY held its annual “No Room for Trafficking Summit” to advance practices and reinforce the industry's commitment to addressing human trafficking through collaboration, education and survivor support. It also announced the 2025–2026 NRFT Survivor Fund grants, which support organizations providing services and resources for survivors.

Keep ReadingShow less
Fed interest rate July
Photo credit: Chip Somodevilla/Getty Images

Fed holds rates steady despite Trump pressure

Summary:

  • The Federal Reserve held interest rates steady and gave no signal of a September cut.
  • Developers and brokers are calling for lower borrowing costs to unlock supply and revive stalled deals.
  • The Fed’s decision followed surprise news that the U.S. economy grew 3 percent in Q2.

THE FEDERAL RESERVE held its key interest rate steady and gave no indication of a cut in September, despite growing pressure from President Trump and his Fed appointees, USA Today reported. The July 30 decision keeps the Fed’s benchmark rate at 4.25 percent to 4.5 percent for a fifth straight meeting.

Keep ReadingShow less
BWH Hotels expands with AI-driven strategy and outdoor lodging focus

BWH sticks to growth plan despite headwinds

Summary:

  • BWH Hotels is staying the course on long-term growth, investing in AI and developer support.
  • A new insurance program has saved some BWH hoteliers $50,000 to $60,000 annually.
  • It aims to reach 5,150 hotels in five years, with 300 deals signed last year and 200-plus in the pipeline.

BWH HOTELS IS maintaining its long-term growth strategy despite market uncertainties, with President and CEO Larry Cuculic citing momentum across core markets. The company is investing in AI, supporting developers and focusing on long-term goals.

Keep ReadingShow less
Amex GBT & Chooose Launch Hotel Emissions Tracker

Amex GBT, Chooose to launch hotel emissions tracker

Summary:

  • Amex GBT and Chooose are launching a hotel emissions tracking tool to calculate users’ Hotel Carbon Measurement Initiative reporting requirements.
  • Emissions data in Amex GBT’s Global Trip Record and Data Lake ensures consistency across travel programs.
  • In January, Finland-based Bob W found hotel carbon emissions are five times higher than HCMI estimates.

SOFTWARE FIRMS AMERICAN Express Global Business Travel and Chooose are launching a hotel emissions tracking tool in the third quarter of 2025. The new tool, integrated into Amex GBT’s platforms, will provide standardized hotel emissions data to calculate users’ Hotel Carbon Measurement Initiative reporting requirements.

Keep ReadingShow less