Log In   |  Register Free Newsletter Subscription
Skip navigation
Zibb
Subscribe to Purchasing
RSS
Reprints/License
Print
Email
Average Rating:
  • (0)
    Rate this:
  • Hotel pricing metric is on its way down

    Consultant see flat-to-down room rates in 2010

    Susan Avery -- Purchasing, 7/1/2009 2:00:24 PM

    Average daily rate (ADR), a key hotel pricing metric continues to drop, says Neysa Silver, director of hotel consulting at CWT Solutions Group, pointing out that in a month's time, ADR fell 4.6% from $113.70 in March to $108.71 in April.

    Silver has been working with travel buyers to ensure that their rates are competitive based on market conditions. She calls these market softening renegotiations.

    "We take a look at their top markets and what the market is doing compared to what it did a quarter or two past," she says. "Then, we reach out to the suppliers and present the buyer's initiatives. Opening up negotiations is not just about reducing rates, although that's part of it. It's that companies are undergoing budget cuts and they want to keep traveling. We are helping them to spend less."

    Concerned about rate integrity-whether they'll be able to raise rates once the economy improves-the hoteliers, in many cases, come back with promotional rates, she says.

    Looking ahead to 2010, Silver expects rates to remain flat or show some marginal decreases.

    See our special collection of travel-buying articles.

    Average Rating:
  • (0)
    Rate this:
  • RSS
    Reprints/License
    Print
    Email
    Talkback
    Reed Business Information Resource Center

    Featured Company


    Most Recent Resources

    Advertisement
    Sponsored Links
    Advertisement
    BizConnect160x160
    BizConnect160x160
    NEWSLETTERS
    Price & Supply Alert
    The Midday Business Report
    Electronics Distribution & Global Sourcing
    IdeaFile
    Supplier Web Locator



    Please read our Privacy Policy

    About Us   |   Advertising Info   |   Site Map   |   Contact Us   |   FREE Subscription   |   Affiliate Links   |   RSS
    © 2009 Reed Business Information, a division of Reed Elsevier Inc. All rights reserved.
    Use of this Web site is subject to its Terms of Use | Privacy Policy
    Please visit these other Reed Business sites