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Stay Competitive in a Slower Travel Market

Stay Competitive in a Slower Travel Market

Across the U.S., travel demand has cooled. Hotels are feeling the effects. Fewer bookings, tighter guest spending, and leaner staffing levels. For many properties, it’s a reminder that the hospitality industry isn’t just about growth; it’s about resilience. The question is: how can hotels stay competitive when demand softens?


1. Maximize Revenue From Every Guest

When occupancy dips, the focus has to shift from more heads in beds to more revenue per guest. Smart upsell strategies, like offering late checkout, room upgrades, parking, or bundled amenities. These offers can drive incremental revenue without requiring new bookings.

Tech connection: AI-driven upsell tools, in-room tablets, and guest messaging platforms can identify the right moment to present offers, making upsells feel natural rather than forced.


2. Streamline Operations Without Sacrificing Service

With leaner staffing, efficiency is critical. Hotels need to find ways to do more with less while keeping guest satisfaction high. Automating repetitive tasks like check-in/out, shuttle communication, or even routine guest FAQs. Simple fixes can free staff to focus on high-value interactions.

Tech connection: Self-service kiosks, digital tipping (to boost staff morale), ID scanning for quick check-in, and real-time shuttle tracking reduce stress points for both staff and guests.


3. Double Down on Loyalty and Repeat Business

In slower periods, winning repeat guests is cheaper than chasing new ones. Travelers who feel recognized and valued are more likely to return. Personalization, thoughtful follow-ups, and rewards for direct booking can make the difference.

Tech connection: CRM platforms and automated remarketing tools help hotels maintain direct contact with past guests, surfacing offers and incentives that keep them coming back.


4. Reframe Value Without Slashing Rates

Discounting rooms might bring in short-term occupancy, but it erodes long-term positioning. Instead, focus on value. Package in extras like free parking, F&B credits, or local experiences that enhance the guest stay without steeply reducing margins.

Tech connection: Dynamic pricing and comp-set monitoring tools ensure rates remain competitive while protecting profitability.


5. Target New Guest Segments

When traditional leisure or business travel slows, opportunity exists in other markets. Look at markets such as government stays, group retreats, or local “staycation” demand. Shifting marketing messages to highlight these segments can fill gaps.

Tech connection: Revenue and distribution platforms help hotels experiment with new channels while measuring which segments convert.


The Takeaway

Slower travel periods test the strength of a hotel’s strategy. By focusing on maximizing revenue per guest, improving efficiency, nurturing loyalty, reframing value, and seeking new demand sources, hotels can stay competitive.

Technology won’t solve every challenge, but it will help hotels run leaner, connect smarter, and prepare for the rebound ahead.

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