Broadcasting deeply discounted rates through widely visible channels is the best way to start a price war. Competitors have faster access to price information than ever before, and with improvements in technology allowing more rapid price changes throughout all channels, no sooner have you made a change, then you could find your market responding. As soon as that happens, you've lost your opportunity to steal market share and reap the volume benefits that were supposed to offset your discount. READ MORE

While we understand that pricing can create demand and move share within a competitive set of hotels, it is well documented that indiscriminate discounting will not create additional demand but dilute existing revenue streams. RevPAR variance at a hotel - both positive and negative - has a multiplier effect on its profitability and thus it's important to understand how much increased demand will you really need to offset the impact of an ADR drop. Here are a few steps you should consider and questions you should ask yourselves before jumping down the rate spiral in hope of capturing that elusive incremental demand. READ MORE

Dealing with price wars is clearly the nemesis of many hoteliers during a recession - with aggressive and often predatory pricing being deployed in many markets. The truth is that when demand wanes, 5-star hotels steal from 4-star, 4 from 3, 3 from 2, and so on. So what is a General Manager to do when price becomes the weapon of choice? Of course the very first move is to manipulate business mix, not price. But managing mix is foremost a strategic maneuver, and decisions must be made over longer horizons. If you're already embroiled in battle you need to start by asking 2 questions? "Are you selling your product for less than the customer is willing to pay?", and "Are you creating products that don't sell?" If the answer is "yes" to both - it's likely you have a pricing problem. READ MORE

These past few years have been tough on the business-for-sale market. This has put hotel owners ready to sell in a waiting game. Rather than sell for below market price, most smart hotel owners have simply been cutting unnecessary expenses, making ends meet and waiting for the market to rebound. Since the recession hit in the fall of 2008, most hotels have seen a drop in revenues and profits. The ensuing fall in purchase-price valuations only made matters worse. But 2010 saw a slight improvement in the seller market and many experts expect that 2011 will be a break out year for the business-for-sale industry. So is 2011 the year you should consider selling your hotel? READ MORE

Hotel renovation is on the rise. There are many reasons, but chief among them are that brands are issuing Property Improvement Plans (PIPs) for properties that have recently been neglected. That banks are acting to enhance the value of assets they have foreclosed on. That owners of older hotels are trying to stay competitive with newer properties. And that in today's economic climate, financing is easier for a new look than for new construction. While the end result of a renovation is almost always satisfying, getting the project done can be hard on a hotel - fiscally and physically. So how can you manage the challenge in a way that minimizes the strain on your budget, your staff, and your guests? READ MORE

Around this time last year we told you about the importance of the Employment Eligibility Verification Form I-9, which all employers have been required to keep on file for their employees since 1986. Form I-9 requires that new hires provide specific documents which establish their right to work lawfully in the U.S. to their new employer within three days of hire. Since taking office, President Obama has directed the Immigration and Customs Enforcement agency (ICE) to strictly enforce sanctions against employers who knowingly hire unauthorized workers. That trend continued throughout 2010 and all signs seem to indicate that the same will hold true for 2011. The hotel industry is closely watched as it bears a reputation for being a hotbed of unlawful employment. READ MORE

Correctly integrating new construction techniques and processes into the development of a new hotel can improve the time, cost and or quality of property. In order to realize the value of new construction techniques and processes, it is critical to take the time to fully understand them, their potential value to the overall project and the time and effort their implementation requires. Learn about how your next new hotel development can benefit from new construction techniques and processes by reading this article. READ MORE

The hospitality industry has always been a fertile ground for price wars. This industry ? indeed the entire travel industry ? is one of high fixed-costs, low marginal-costs and price transparency. That means when one hotel cuts prices, other hotels react quickly, typically matching the lower price to avoid losing customers. The thinking is that it's better to put a head in a bed ? at a low price ? than not at all. During a recession, the situation becomes more desperate, as hotels slash prices in an attempt to stimulate new demand or gain market share. Every dollar of revenue is vital to cover the high fixed costs of building and maintaining properties. READ MORE

In the travel competitive arena, hotel executives have to deal on an every day basis with various challenges of distributing their room inventory. These challenges include Internet-only rates, distressed room inventory web sites (such as Priceline and Hotwire) and an increasing number of OTAs and Meta sites such as Hotels.com, Kayak.com and others. In order to distribute effectively the room inventory, a deep knowledge and understanding of the distribution channels as well as the impact of e-CRM and social media is required. One challenge is determining the combinations of distribution channels and the optimal number of hotel rooms to be offered for sale through each channel. READ MORE

Hoteliers who lowered their room rates in an attempt to boost occupancy during the recent recession are finding that their actions are now acting as obstacles to their recovery. For future periods of soft demand, it is of the utmost importance to always align any tactics employed to the larger revenue management strategy of the hotel. There is a now an overwhelming acceptance in the industry that in order to truly maximize revenue in a coherent and effective way over the long term, revenue managers, and the discipline of revenue management itself, should fundamentally move beyond traditional, tactical revenue management, to embracing a strategic revenue management focus. READ MORE

The field of market price intelligence is powering a new era of revenue management in the hotel industry. At a time when the strategic importance of responsive rate management has never been greater, hoteliers are finding that monitoring hundreds -- or thousands -- of websites for the most accurate data is a monumental task that grows in complexity each day. Revenue and general managers must abandon inward-looking cost-plus rate models in favor of more rigorous outward-focused knowledge-based strategies such as price intelligence. This article reviews price intelligence as a best practice. READ MORE

When businesses are going through hard times it's natural to look for ways to cut costs. But sadly all too often the things that get dropped are those that are essential for long-term prosperity and growth - marketing and training. Making cuts in these areas could certainly save a few dollars in the short-term, but it won't be long before the cracks appear. There are many reasons why hoteliers may be tempted to cut back on training. The commonest excuse I hear is " Well, what if I invest in their training and they decide to leave?" But what if you don't invest in their training and they decide to stay? Investing in training has so many benefits both directly and indirectly. READ MORE

What is loss control and how is it relevant to running profitable hotel operations? In the context of risk management, loss control essentially describes the measures taken to reduce and eliminate the occurrence of workplace accidents that lead to insurance claims. Taking a strategic approach to loss control not only helps make hotel work environments safer for employees, it can also result in direct cost savings for the business. When hotel operators take a strategic approach to workplace safety, workers' compensation costs can decrease, fewer overtime costs accrue, productivity increases, turnover rates decrease and relations between labor and management improve. READ MORE

Shockingly, a business's customers are not its #1 priority. Customer satisfaction is 1B because employee engagement has to be 1A. I've heard gasps and observed loaded glances exchanged across boardrooms when I've made this assertion. After all, it's the customers who pay the bills and no one doubts the importance of maintaining their satisfaction. But I'll say it again: employees are a company's #1 asset. Without engaged employees, you'll never get extraordinary customer satisfaction. READ MORE

Spa marketing now focuses on regional returns. Times have changed as destination spas prepare for a new strategy. “Invite the locals back to your business” states Bill Di Stanisloa from GreenSpa 101. Regional Marketing begins with knowing everything about your spa as it pertains to your location, its products and the benefit each guest will receive while experiencing a visit. Excite all spa employees by making them part of the marketing program. peak to your local guests and find out why they chose your business over another. Your spa should reflect your indigenous attributes regardless of any popular treatment or trend. READ MORE