Discounting – It's Human Nature

13 July, 2009 by Martin Kelly

Discounting – it’s human nature. You can’t fight it, yet so many people do. Just eight or nine months ago industry leaders were saying everyone’s learned from the past and there’d be no discounting this time around. Alas, that’s not to be. Discounting dominates just about every market, every niche. Just look at US accommodation.

STR Global predicts revenue per available room will drop by 17.1% in 2009. This is a situation company president Mark Lomanno described as “disappointing, surprising and a little bit sad.”

“We felt like was that the industry would hold pricing more than it’s been able to. A lot of the commentary that we heard from the brands and the revenue managers is that they learned their lessons in 2001-2002, and they would be able to react better the next time around.

“For whatever reason, maybe because this downturn is so severe and so dramatic and so different than they were expecting, what they learned they weren’t able to apply.”

Lamanno concluded: “On an inflation-adjusted basis, its probably going to be longer than six years before the rates get back to 2007 levels.”

History repeats. It’s a maxim, not a cliché.

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Events

'REAL TIME - Sydney, March 30'

When: March 30, 2012
Where: Amora Hotel Jamison
Program: Real Time
Bookings: $499 + gst Early Bird

BOOK now to get the Early Bird rate for the No Vacancy accommodation industry conference in Sydney.

Real Time is the theme of No Vacancy 2012, reflecting the fact that we live in a world where everything happens now, or not at all.

In no business is this more obvious than tourism. Booking lead times are now measured in hours not days or weeks.

To succeed requires a new way of doing business, a fresh mentality and a fair amount of nerve.

The program is packed with the information you'll need to thrive in today's just-in-time world with a focus on distribution, marketing, innovation, consumers and technology.

Speakers confirmed so far include the following, and there are a few more on the way...

Rachel Argaman, CEO, Toga Hospitality
Dave Audley, Heading of Consulting, Experian Hitwise
Quentin Briard, GM Australia & NZ, Club Med
Daniel Bridges, Head of Travel, Trade Me (NZ)
Julio Bruno, Global Vice President Sales, TripAdvisor
James Cassidy, HomeAway.com.au
Robbie Cooke, CEO, Wotif.com
Will Deague, CEO, Art Series Hotels
Dean Dransfield, Director, Dransfield Hotels and Resorts
Bob East, CEO, Mantra Resorts
Leah Lipman, Area Director Reveneue Management Australasia, IHG
Simon McGrath, CEO, Accor Australia
Bryon Merzeo, Analyst, STR Global
Bernard O’Keefe, Group Online Marketing Manager, Hamilton Island
Todd Parker, Founder, Parker Travel Collection
Nikolai Pitchforth, Head of Online Travel, Google
Brett Pointon, Founder, Oaks Hotels and Resorts
Anton Stanish, GM, The Stayz Group
Janet Wilson, Managing Director, Nationwide Hospitality

It'll be a great day. As usual, the focus will be on distribution, marketing, sales, innovation and technology for both hoteliers and Online Travel Agents.

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Returning September 17, 2012

The date has been set for TRAVELtech 2012 - Monday, September 17.

Meanwhile, thanks to everyone who attended TRAVELtech: Best of Enemies in Sydney recently.

It was a fantastic event, lots of fun with a touch of controversy.

Please check out the photographs or use this link to see great 360 degree panorama shots of the conference from Panedia.

TRAVELtech is Australia's original web travel, marketing and distribution event, featuring a compelling program, great speakers and fantastic networking.

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