June 21, 2018
Travelers losing interest in home-sharing
According to MMGY Global’s Portrait of American Travelers study, just 33% of respondents are interested in sharing economy accommodations, down from 41% in 2017 and 37% in 2016.Read more
With corporate RFP season fast approaching, now is a good time to touch on market factors that could influence that strategy. A sound strategy for the 2014 corporate segment should primarily be based on expectations of what market conditions will be in 2014.
Just as a savvy investor values a stock based on expectations of future earnings growth, so should planning for the corporate segment in 2014 be based on expectations of what the market will be offering in 2014. Relevant questions to be asking now:
- Will there be a strong base of 2014 group business on the books heading into that year?
- Will transient negotiated (i.e., corporate) demand growth be strong heading into 2014?
- Will retail pricing/ADR growth be strong?
- What will be the level of discounting heading into 2014?
- What will the 2013 discount spread be between transient retail and transient negotiated ADR?
- Are there markets where this retail and negotiated pricing spreads indicate opportunity to grow revenue, through more or less aggressive corporate negotiated pricing?
The following article touches briefly on each of these questions.
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