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I don't know what the people at Corporate are smoking, but they need to share!
Tourist season traditionally runs from Memorial Day to Labor Day. The only major dates we have after Labor Day are Back-to-School (we're the closest to the University) and the holidays. Given the low demand, it would make sense for rates to either not change or drop, right?
It would make no sense to raise our room rates, right?
So, what does Corporate do?
They increase our rates by $10 a night!!! WTF?
We did okay for the Back-to-School, but then our occupancy and RevPAR* plummeted. Our rates just got lowered back to what they were after our Area Manager ripped Corporate a new one.
Yeah, yeah, I know, I've read a million times you can't create demand by dropping ADR**, but you CAN drive what little demand there is away by raising it!
*RevPAR = Revenue per Available Room (1 rm at $100 and 1 vacant room = $50 per available room)
**ADR = Average Daily Rate (1 rm at $100 and 1 rm vacant = $100 average rate)
Tourist season traditionally runs from Memorial Day to Labor Day. The only major dates we have after Labor Day are Back-to-School (we're the closest to the University) and the holidays. Given the low demand, it would make sense for rates to either not change or drop, right?
It would make no sense to raise our room rates, right?
So, what does Corporate do?
They increase our rates by $10 a night!!! WTF?
We did okay for the Back-to-School, but then our occupancy and RevPAR* plummeted. Our rates just got lowered back to what they were after our Area Manager ripped Corporate a new one.
Yeah, yeah, I know, I've read a million times you can't create demand by dropping ADR**, but you CAN drive what little demand there is away by raising it!
*RevPAR = Revenue per Available Room (1 rm at $100 and 1 vacant room = $50 per available room)
**ADR = Average Daily Rate (1 rm at $100 and 1 rm vacant = $100 average rate)