The outlook for the hotel industry is looking very positive these days. Americans are continuing to take vacations, business travel is doing well and demand is up for hotel rooms.
To determine why and how, a panel of hospitality executives from the country’s top ownership and management groups at HI Connect Design discussed the current state of the hotel industry.
Mike Marshall, President and CEO of Marshall Hotels & Resorts, said that the time is right for guests to pay for more hotel rooms, and they are more than willing only if a property is in top condition.
“There is a lot of real bad product in the market and there is a need for many to see a refurbishment,” said Mr. Marshall, in this Hotel Interactive article. “And I think you’re going to find that we’re going to see a lot more PIPs because we’re going to start to see [many more] transactions occur and we’re going to see PIPs from that. We’ve recently taken over two hotels for institutional owners, who bought paper, got into them, and the hotels were absolutely wrecked. I mean so it’s everything we’re going to do to bring them back to life and you’re going to see a lot of that coming.”
We believe that innovation will serve as the critical player in ensuring that hotels are more competitive and profitable. By utilizing technologies that allow guests to experience a completely frictionless environment – from booking to checkout and beyond – hotels can achieve high-levels of brand loyalty.
Basic business principles say that the law of supply and demand will dictate prices. With demand up right now, the prices will organically increase based on what travelers are willing to pay. When you factor in using new innovations for competitive differentiation, then hoteliers can raise their prices even more and dramatically expand their profit margins.