Most hotels globally will re-open someday after the Coronavirus is brought under control, and will also continue to accept reservations for future stays, so need to make sure they price those stays now.
This article discusses various takeaways from previous crises affecting the hospitality industry, including following the example of some hoteliers in Asia-Pacific, who have been slower than western providers to cut rates to stimulate demand, and instead offered “value-adds” such as offering substantial credits if guests re-book within a year or free airport transfers.
Most from experts are also advising hotels to resist cutting their future rates as it is hard to put them back up again, especially if they normally offer ‘best available retail rate’ tie-ins.
Some key takeaways to help set rates wisely also include only considering the data from the past couple of weeks as the ‘new world order’ and thinking about the bigger picture. Offering flexibility around cancellation will make a better impression than lower rates in themselves.