Hotel Economics: The Role of Supply and Demand in Setting Rates
Hotels never struggle. You open your hotel and become instantly successful. If you build it, they will come. This is true, provided you have done your homework or feasibility study correctly. That study will show whether the hotel will succeed or be an eternal struggle. You do not have to do anything outside the box as a hotelier. You just have to tell the market you are open, add your rooms to distribution channels, and follow your competitors' rates. You will undoubtedly have the same occupancy and rate as your competition. For most independent hoteliers and mega-brands, this is good enough. Stop reading this post if you are happy with what you have.