Hotel marketers must gain better control over pricing

Africa

Even as the hotel industry recovers from the recent recession, hotel operators must find a way to work on pricing and distribution in the brave new world of the internet, according to a new hospitality trends report by Cornell’s Centre for Hospitality Research. In October 2010, the Cornell Center for Hospitality Research produced a major “thought leadership” conference, the Cornell Hospitality Research Summit (CHRS). The summit featured four major keynote addresses and 45 breakout presentations…

In October 2010, the Cornell Center for Hospitality Research produced a major “thought leadership” conference, the Cornell Hospitality Research Summit (CHRS). The summit featured four major keynote addresses and 45 breakout presentations. Topics included social media, industry analytics, branding, restaurant trends, and hotel industry trends.

This report summarizes presentations made on hotel industry trends. At the time of the CHRS, the hotel industry was beginning to recover from one of the worst recessions in recent memory. While the industry was able to remain profitable overall, recovery was slow and fitful. While demand was bouncing back with unexpected strength, room rates were not keeping pace.

One issue for the industry to resolve is its relationship with third-party websites, or online travel agents (OTAs). The OTAs have been instrumental in helping hotels sell distressed inventory, but at the same time, price transparency has presented a challenge for hotels that wish to restore prices to pre-recession levels. In short, the industry must find out how to maintain control of pricing.

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Theodore Koumelis

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