Hotel Industry Trends for 2023: Pricing, Business Travel, and Sustainability

The hospitality industry is entering 2023 with renewed momentum. Independent hotels, in particular, have an opportunity to capture more demand as travelers return and expectations evolve. According to the Amex GBT 2022 Global Report, hotel rates are expected to rise again in 2023—though at a slower pace than in previous years due to economic pressures.

Let’s explore the top hotel trends to watch in 2023.

Rising Room Prices

Hotel rates surged in 2021 and 2022, fueled by pent-up demand for travel and events. While 2023 may bring slower growth, prices are still expected to climb as:

• Inflation continues to impact costs
• Travelers prioritize in-person experiences
• Demand outpaces supply in many markets

For hoteliers, staying agile with pricing will be critical to capturing maximum revenue.

Embracing Multiple Rate Types

Gone are the days of fixed-rate models. To stay competitive, hotels should:

• Experiment with multiple rate types (advance purchase, corporate, packages)
• Use rate shopping tools to monitor competitors
• Refresh opportunities in real time with dynamic pricing

Independent hoteliers who rely on static pricing risk leaving significant revenue on the table.

Dynamic Pricing Goes Mainstream

Dynamic pricing, long used by airlines and large hotel chains, is now becoming essential for independent hotels too. This strategy adjusts rates in real time based on:

• Occupancy demand
• Seasonal patterns
• Local events
• Guest booking behaviors

With the right revenue management software, hotels can maximize ADR (Average Daily Rate) and RevPAR (Revenue per Available Room) while boosting occupancy.

Business Travel Recovery

While hybrid work remains popular, companies still recognize the value of face-to-face meetings. Many businesses that reduced office space are increasingly booking:

• Hotel conference rooms
• Meeting facilities
• Group accommodations

This shift presents revenue opportunities for hotels with flexible event spaces.

Sustainability and Green Initiatives

Eco-conscious travel is more than a trend—it’s becoming a requirement. Guests, particularly younger demographics, increasingly prefer hotels that demonstrate:

• Sustainable operations (energy-efficient lighting, water conservation)
• Locally sourced and organic menus
• Reduced waste programs

Sustainability is not just a moral imperative; it’s a competitive advantage.

How to Stay Ahead in 2023

Forecasting and adapting to these trends can be time-consuming. That’s where Pricepoint comes in.

Pricepoint is an AI-powered dynamic pricing engine that:

• Analyzes historical and real-time data
• Runs thousands of simulations
• Optimizes room prices 24/7
• Pushes updates automatically to OTAs

Independent hoteliers using Pricepoint report up to 19% more revenue and 13% higher occupancy on average.

👉 Start your free 30-day trial at pricepoint.co/sign-up/ and make 2023 your most profitable year yet.

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