Friday, August 28, 2009

“More heads in bed” VS “Room revenue bottom line”- The Battle Continues…

A study was conducted based on two branded, high tier, hotels assumed to be located in a downtown area in a major US market, same in size for sleeping rooms and meeting space, and competitors to each other. From July 2008 to June 2009, one hotel opted to lower the Average Daily Rate (ADR) aggressively. Over the same time period, the other hotel opted to maintain a consistent ADR. Both hotels anticipated a high room revenue in the end. Who had the right answer? See if you can determine for yourself at (Part 1) & (Part 2)

No comments: