It’s almost a new year in the hospitality industry, and independent hotel revenue and interest is on the rise. With the holiday season fast approaching and people becoming more and more comfortable with travel and hospitality, smart hoteliers have already started planning their strategies for 2023. According to a report released by Amex GBT in September 2022 (AMEX Report), hotel rates worldwide will increase in 2023, but at a lower rate than 2022 due to the economic decline. A savvy independent hotelier will want to capitalize on this invigoration of the industry – here are some hotel trends to consider in 2023:
ROOM PRICE GOES UP:
Hotel rates increased in 2021 and 2022 due to pent-up demand for travel and in-person meetings. With inflation being what it is and demand rising significantly, hotel rates will almost certainly increase in significant fashion. Keeping an eye on the market is the name of the game for the independent hotelier looking to maximize their revenues and occupancies.
MULTIPLE RATE TYPES:
Amex GBT’s Global Business Consulting Advisory Arm recommends keeping an open mind about multiple rate types and implementing rate shopping technologies to refresh opportunities in real-time. Market analysis will be key for hoteliers, the most successful of whom will know their inventory levels, or use a dynamic pricing platform to track this for them. A fixed-rate cost model will be the equivalent of leaving money on the table.
Dynamic pricing is a flexible room pricing strategy. Large hotels and airlines have used it for years because it works. Essentially, dynamic pricing is the monitoring of supply and demand, and adjusting prices in response to a change in one of the two. As more and more hotels modernize their methods, expect to see successful hoteliers move towards dynamic pricing/revenue management software.
The COVID-19 pandemic showed businesses the value of the hybrid working model, but even then, there’s no real replacement for face to face meetings. As restrictions continue to ease and people become more comfortable traveling again, expect businesses who have reduced their own real estate to book conference rooms and meeting rooms with more frequency.
GO ON GREEN:
As a larger percentage of the population realizes the severity of climate change, sustainability and green initiatives will sway larger percentages of customers in their buying habits. Studies have shown that younger demographics in particular are more concerned with the planet’s safety, so expect sustainability to become a factor in sales moving forward into 2023.
For the forward thinking hotelier, forecasting trends is extremely important. It can be time-consuming to stay ahead of the curve… but what if you had a dynamic pricing tool that could do it for you? Pricepoint is a dynamic pricing engine that analyzes historical data, derives forecasts and runs thousands of simulations, and optimizes hotel room prices in real-time, 24/7. Head over to Pricepoint.co/sign-up/ to book your free demo today!