The Cost of a Bad Hotel Opening
The Hotel Business by Ludan Zhang
Episode notes
Episode Description
A new hotel opens at 20% occupancy while the competitor next door is already at 80%. The obvious reaction is to cut rates, open more channels, and chase volume. That may be exactly how a new hotel teaches the market to see it as cheaper than it was meant to be.
In this episode of The Hotel Business, Ludan looks at what really happens during a hotel’s opening ramp-up. Using two pre-opening experiences, she explains why early pricing decisions, first reviews, guest mix, channel choices, room-type value, and brand execution can shape the hotel long after opening day. A slow start is not automatically a positioning failure. The first guests and first deals are also the hotel’s first market signals.
The episode asks a practical question for owners ...