Pressure on hotel rates not likely to go away soon
June 04, 2009 |
Corporate hotel rates recently negotiated downward are unlikely to increase anytime soon, said several multibrand hotel company CEOs last week at New York University's International Hospitality Industry Investment Conference.
Noble Investment Group senior managing principal and CEO Mitesh Shah said on Monday the length of the current economic downturn, now in its 18th month and already longer than most recent lodging industry downturns, meant it would take time for hotel companies to bring corporate rates back to the levels reached in 2007.
Noble, which operates upscale hotels under Marriott, Starwood, Hilton, Hyatt and InterContinental Hotel Group brands, has seen corporate buyers push to lower rates, and they will have the ability to dictate pricing for a while, he said.
"They understand that if they are traveling, they're one of the very few traveling, so they've gotten very aggressive," Shah said. "That's not going to change until demand starts increasing."
Get the full story at BTNonline
Latest Industry News
Cornell study on flash sale, private sale distribution in hospitality
13 Feb, 2012 | Hotel Marketing
A room with a (re)view - dangers for hoteliers in unregulated online reviews
13 Feb, 2012 | Hotel Marketing
TripAdvisor Select scam targets hotels
13 Feb, 2012 | Hotel Marketing
Hotel guest satisfaction: Understanding who loves what and why
13 Feb, 2012 | Hotel Marketing
The growth of content marketing
13 Feb, 2012 | Online Marketing
Yelp advertising is a rip-off for small advertisers
13 Feb, 2012 | Online Marketing
Expedia reports lower quarterly profit, revenue outlook not promising
10 Feb, 2012 | Online Travel
Will independent hotels distribute through Roomkey.com?
10 Feb, 2012 | Hotel Marketing
Five countries to visit should the euro fail
10 Feb, 2012 | Hotel Marketing
New hotel payment solutions emerging in Europe
10 Feb, 2012 | Hotel Marketing
Hotels reach out to niche markets
10 Feb, 2012 | Hotel Marketing
Driving higher commissions, the simple solution to online hotel marketing
10 Feb, 2012 | Hotel Marketing
TripAdvisor revenue up 30% in first quarter as a public company
09 Feb, 2012 | Online Travel
In spite of economic concerns, consumers plan to travel more, increase travel budgets
09 Feb, 2012 | Hotel Marketing
Wyndham launches new site to drive direct business
09 Feb, 2012 | Hotel Marketing
Most Popular Articles
Five countries to visit should the euro fail
10 Feb, 2012 | Hotel Marketing
Will independent hotels distribute through Roomkey.com?
10 Feb, 2012 | Hotel Marketing
Groupon will ‘trash your brand’, says BA and Tui
09 Feb, 2012 | Online Marketing
The hospitality industry’s mobile web failure
08 Feb, 2012 | Hotel Marketing
Cornell study on flash sale, private sale distribution in hospitality
13 Feb, 2012 | Hotel Marketing
Driving higher commissions, the simple solution to online hotel marketing
10 Feb, 2012 | Hotel Marketing
In spite of economic concerns, consumers plan to travel more, increase travel budgets
09 Feb, 2012 | Hotel Marketing
Pinterest is over-hyped
08 Feb, 2012 | Online Marketing
A room with a (re)view - dangers for hoteliers in unregulated online reviews
13 Feb, 2012 | Hotel Marketing
New hotel payment solutions emerging in Europe
10 Feb, 2012 | Hotel Marketing
Latest Company News
Availpro and EasyRMS come together to boost hotel revenue
08 Feb, 2012 | Hotel Marketing
Appnostic brings hotel web content to social media
08 Feb, 2012 | Hotel Marketing
Lodging Interactive adds Google+ service to enhance hotels’ social media strategies
08 Feb, 2012 | Hotel Marketing
ezRez Software rebrands to Switchfly
08 Feb, 2012 | Hotel Marketing
Vincci Hoteles selects EZYield for hotel channel management
19 Jan, 2012 | Hotel Marketing
RateGain to provide competitive rate intelligence for Accor N.A.
18 Jan, 2012 | Hotel Marketing
Lodging Interactive, CoMMingle capitalizing on 10 years of success
17 Jan, 2012 | Hotel Marketing
Availpro and Premier Hotels of the World enter extended partnership
15 Jan, 2012 | Hotel Marketing
Lodging Interactive reveals what’s hot in social media & marketing
12 Jan, 2012 | Hotel Marketing
Lodging Interactive offers 5 tips to making Web strategies ‘fresh’
10 Jan, 2012 | Hotel Marketing
VIZERGY honored with six HSMAI Adrian Awards
04 Dec, 2011 | Hotel Marketing
Appnostic announces social distribution partnership with Genares
04 Dec, 2011 | Hotel Marketing
Webinar: Social Media and Storytelling for Hotels, November 30th at 11:00 am EST
22 Nov, 2011 | Hotel Marketing
Hotels collect guest reviews from Facebook
18 Nov, 2011 | Hotel Marketing
TravelClick Webinar: Creating customer value beyond the discount
18 Nov, 2011 | Hotel Marketing
E-Mail Newsletter
Visit our sponsors:
