What If?

Abstract

Changing room rates at the rate of inflation sounds like a good bet, especially when the vacuum of recession drags industry pricing. However, an analysis that pits actual prices against what room rates would have been based on simply extending the average rate of change shows that hotel managers have, on balance, beat the average in setting room rates. What that means for the upcoming industry recovery is that we can anticipate that managers will again exceed the average rate of change as demand allows rates to increase.