Hotel Industry Trends in 2009: Deep discounting and do-it-yourself are in, green programs and healthful food are out

The new year has begun and so far it’s not pretty. With the hotel industry facing the lowest occupancy rates since 1971, a number of alarming trends are emerging. In the midst of all the doom and gloom I thought I’d take a more lighthearted approach to my predictions for the hotel industry in 2009.

1. Everything learned in revenue management training will go out the window. Hysteria will rule the day as hotels drop rates, get indignant when competitors lower rates in response, and then panic and drop rates even further. All inventory will be treated as distressed inventory, erasing years of brand-equity-building and training travelers to look for the best deals on third-party websites. It will take years to recover from these rate wars, and the only victor will be the traveler.

2. Travelers will become more demanding and less forgiving. Smelling the hotel industry’s desperation to fill rooms, travelers will demand even deeper discounts and more value add-ons, while at the same time refusing to tolerate the cuts to services hotels will be forced to implement to stay afloat, posting nasty comments on TripAdvisor like “Save your money! This hotel has gone to hell!!”