Stemming from a recent article, the San Diego Bayfront Hotel played host to an annual hospitality investment summit where industry leaders met to discuss present trends and how businesses will be affected by the current economic climate. Their conclusions are generally positive, but we have our own opinion on how that may fair for individual hotels.
All said, insiders proclaim that the hospitality industry is bound to make a slow yet strong recovery this year – one only further bolstered by new protective regulations. A key finding is that room rates are not adjusting as quickly as room occupancy improvements, with the average hotel occupancy rate sitting at just below 60%. This indicates that 2011 will be filled with a reinvigorated competition as hotels cautiously lag behind the economic recovery with lower nightly rates. As well, this renewed optimism has slated many previously halted construction projects back into the development fast track.
Again, it all boils down to guest services and how you can keep your clientele happy and loyal. With existing properties still in recession mode and more hotels entering the game, customer retention will always be the faster and cheaper way to keep occupancy rates as high as possible. Having all your staff on the same page and up-to-date with key information will ensure that 2011 delivers on its promise of improved business conditions. Contact us today to see how we can help.
