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Managing Hotels in the Downturn: Smart Revenue Growth through Pricing Optimizations - Essay Example
Pages 4 (1004 words)
Name: Instructor: Course: Date: Managing Hotels in the Downturn: Smart Revenue Growth through Pricing Optimizations This article reflects the economic hard time that has hit the hostel industry due to global recession. This economic crisis is described as the worst crisis, to hit hotel industry…
Additionally, this article reports some outlines in the customer-oriented pricing approaches. The report also indicates some recent years’ complex shifts in the market revenue as well as the development of management schemes within non-manageable revenue. According to the article, the hotel industry experienced a sharp slowdown due to the worldwide economic hardship, financial crisis, and reduction in the consumer confidence. The economic recession experienced by almost all sectors of the economy has been described as an economic phase. The economic phase is interpreted by low rates of occupancy within corporate and leisure departments in the hotel industry. The negative impacts of this phase are expected to continue due to high elasticity of business travel and tourism spending as well as a reduction in the airline carriers (Butscher et al 404). The article also cites the investment drought to be another challenge facing the hotel industry. The economic recession has led to a drop in stocks of the hospitality industry with a greater impact; this is compared to drop in stocks in any other sector of the economy. Subsequently, the private sector attractiveness has been plummeted due to reduction in capital and the unavailability fund for new projects and renovation. ...
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