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Cornell’s School of Hotel Administration

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Cornell’s School of Hotel Administration

Cornell’s School of Hotel Administration

Rating Rate: How Hoteliers Made the Right Decisions This Time Around

HotStats | April 7, 2022

One of the bright spots for the hotel industry amid the pandemic was the ability to hold—if not drive—average daily rate, particularly in leisure-led, drive-to markets. It is something that evaded hoteliers during prior calamities, including 9/11 and the Global Financial Crisis of 2008, when hotels slashed rates in an attempt to win back demand. It proved a faulty strategy. But understandable: The knee-jerk, common-sense reaction to depletion of demand is to do whatever it takes to offset that reduction. That means filling rooms by any means and the biggest lever hoteliers have at their disposal is rate. The problem with that move is t...

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