The recession has had a major impact on the hospitality industry. Occupancy levels are down as much as 25% in some markets with the average daily rate falling by 10%. This has many hotels scrambling for a life line.
Consumers, business and leisure travelers, have shown a trend to opt for mid-scale hotel properties versus luxury properties. Consumers can get more bang for their buck as mid-scale hotels offer many of the amenities found in luxury hotels. Many of these amenites (which luxury hotels charge fees for) are free in mid-scale hotels, such as high speed internet and a hot breakfast buffet. This trend in “trading down” is quite evident all across the country. Consumers are looking for value, and mid-scale hotels are positioned perfectly for this.
The Comfort Suites Hotel located in Southgate, Michigan is one such mid-scale hotel. Business and leisure travelers love the value they get at this hotel. Everything they need: convienient location, spacious rooms, great amenities, and superb service without paying for the “extras” you don’t need.
Experts predict that this recession will permanently change the travel behavior of consumers and that this “trading down” trend is here to stay.
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Very interesting read. Thanks.
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