Are you wondering what the hotel industry is like during this economic slowdown? Here are a few phrases that may provide a clue:
- It doesn't get worse than this!
- Nightmare on Hotel Street
- Hotel4Sale
- Bait's Motel Reopens (ugh!)
- Hotels Offer Fuel Subsidies to Lure Guests - WSJ.com
In a short article tucked away The Wall Street Journal today, there is an interesting marketing idea being presented: using vouchers to bring in paying guests. But to me, the new plan to give away vouchers for free gasoline as a means to bring in guests is not a very exciting idea. In fact, how many ways and in how many languages can you say stupid?
If lower costs do not drive hotel bookings, does the brilliant marketing team at Sleepin' Now & Sellin' Later think that there is any possible way to bring up occupancy with a $50 carrot? I don't think so.
While Marriott (NYSE: MAR) has been suffering, the standard ideas to help bring up shares hold true:
- Cut employees
- Slash Costs
- Look for a merger opportunity
- Sell unproductive properties
- Increase customer service and loyalty
Other than that, good luck. An economic recession is not going to be avoided with a $50 voucher. Sorry.
Andrew Horowitz is a money manager and author of The Disciplined Investor. He discusses similar economic issues with Robert Reich in the most recent episode of The Disciplined Investor Podcast.
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Reader Comments (Page 1 of 1)
4-15-2008 @ 6:04PM
Lacey said...
79% of all American hotels are owned and operated by Indians or other foreigners. 86% of all convenient stores are owned by foreigners--mostly Indians. Dell, Macy's, AMERICAN Express, even AOL have moved major portions of their call centers to foreign countries...mostly India.
Why aren't we reclaiming our country? I always ask before making a reservation if a hotel is Indian owned or not!!!! If it is INDIAN owned, I do not stay there! SUPPORT AMERICAN owned and operated!!!!
America is selling her soul to China and India and our children and grandchildren will suffer for it!
We are headed to Third World status, while making Indians and the Chinese rich. Everyone seems to be complaining about it, but not too many people are boycotting companies that are sending jobs and money over seas!
WAKE UP AMERICANS!!!
4-16-2008 @ 10:34AM
GFJohnson said...
None of the hotels I have stayed at recently (Marriott umbrella) have lowered or kept the prices that I paid last year. They've all gone up. None in my future trips have done anything but go up. I'll never figure out the CPI because everything I've bought has gone up much more than the 3-4% claimed by the government.