Nationwide Restaurant Consultant

Hotels are adding and raising room surcharges to boost profit. It’s a risky strategy, as room rates are the No. 1 or No. 2 determining factor for leisure travelers who book rooms.

“I think initially the Roosevelt will see a decline, the new kid on the block always creates that for the competition. As long as the Roosevelt rises to the occasion and understands that competition forces innovation, however, then its business will ultimately increase because of the buzz created by the W.”

Economic crisis, lower than average consumer spending, third party booking sites, commission based sales and tourism taking a turn for the worse are all paths that lead to the same location – lower average room rates (ARR). The strain from the online retail model continues to put tremendous pressure on rates, forcing operators to believe that even lower rates must be offered to these online consortia.