I keep a close watch on this heart of mine
I keep my eyes wide open all the time
I keep the ends out for the tie that binds
Because you’re mine, I walk the line
And the lyrics of Johnny Cash might also guide the steps of many in the hospitality business trying to walk the line, and the very fine line, between creating and maintaining a profitable business model while keeping the hospitality business some what hospitable to the hotel guest.
Recent data points from Q1 2011 essentially show the industry making gains in occupancy but (still) through reducing the rate. We would say that ADR continues to disappoint although it is better and levels of occupancy have returned in some markets and lodging segments. What we really mean is that the industry pricing is lower than we thought it would be, but, oh well, at least we are filling more of our rooms in some markets.
Of course, if we admit that some guests, those that are leisure travelers who do not have to travel, are doing so because it is cheap, then what can the industry do to really “wow” them with an awesome guest experience so they will come back as rates increase? That line between profitability and hospitability is the tough one to walk right now.