Within the last context of economic crisis, the international tourism has decreased since end of 2008. This decrease has touched all segments related to the tourism industry: airline companies, touristic monuments and mainly hotels. Both individuals and companies had reduces their travel expenses in order to make savings.
As companies had reduces their travel expenses, they reduced the budget allowed to hotel negotiated rates. Therefore some companies had to negotiate rates with 3 star hotels instead of 4 star hotels for example; they reduces hotel ranking. In order to stay competitive, 4 star hotels decreased a lot their usual rates and did not automatically include amenities such as breakfast, internet access or access to the fitness center.
Today, hotels activity has started back, but is not as successful as in 2007. Consequently hotels are increasing their negotiated corporate rates, which I believe is a right thing to do; but companies do not really see the situation as being positive. Hotels have increased their rates by 10-15 %, and I understand that companies are not willing to pay rates that high. This leads to long negotiations.
In my personal opinion, I believe that it is important for hoteliers to increase their rates in order for them to recover from the economic crisis. Rates have considerably been reduced during the last 2 years. If hoteliers do not increase their RevPar and GopPar, it will be very difficult for them to stay competitive and regain their 2007 health.10-15% is a high rate increase, but it is essential on along term basis.
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