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What is the meaning / definition of Unconstrained Demand in the hospitality industry? Unconstrained demand refers to the quantity of rooms in a hotel that could be sold if there were no constraints, no limits. When considering unconstrained demand, a hotel manager or revenue management team must ask themselves: “If there was no limitation whatsoever on our hotel’s capacity, during, [...]
What is the meaning / definition of Pegasus Switch, in the hospitality industry? Pegasus (or Pegasus Solutions) is the largest processor for electronic hotel transactions and offers distribution services to about 100.000 hotels worldwide. It offers an advanced distribution service called ‘seamless connectivity’. Its function is the connection between the hotels CRS and the GDS through a product called ‘Seamless [...]
What is the meaning / definition of Turnaway in the hospitality industry? Sometimes, a hotel simply cannot accommodate a guest who has already made a reservation. Having to treat such a guest as a Turnaway can happen at any time of year, but this usually occurs during a certain period and for a compelling reason or reasons. For example, a [...]
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- I am surprised by the number of hotels that are still trying to market themselves selling standard rooms. What is so special about that ‘Standard Room’ that it will persuade potential guests to buy? How is one standard room different from a standard room in another hotel?
Just about every industry expert and professional has been preaching for the last 6 months that dumping rates is not the solution to offset low demand during these challenging economic times. But to unload distressed inventory even Starwood Hotels & Resorts is cutting its prices up to 50% at approximately 600 properties worldwide.
- A lot has been written and talked about hotel brand and price erosion in the past few months and years. Hotels have vocally expressed their disgruntlement about the commoditization caused by online travel agencies. Indeed the increase of online distribution in the hotel and travel industry has created a high level of price transparancy and rate parity strategies contribute to the commoditization of the hotel product and services.
