• Practical Strategies to Boost Revenue Using Layered Rates.
• Actionable Insights on Inflation and Costs.
• How to Navigate a Challenging Market.
Small hotel owners face persistent inflation and stagnant accommodation sales. Inflation, which dropped to 1.7% in September 2024 after falling from double digits in early 2023, climbed back to 2.6% by November. Rising food and energy prices, sticky core inflation at 3.5%, and record-high rents and wages have increased operational costs. An upcoming National Insurance hike may further raise inflation by 0.4%. Businesses are expected to increase prices by 3.8% in 2025, risking a cycle of escalating inflation.
Meanwhile, accommodation sales growth has stagnated due to weak consumer spending, and economic uncertainty. Travelers are cutting back on discretionary spending, leaving small hotels particularly vulnerable.
Adopting layered pricing strategies can help small hotel owners navigate these challenges. Layering daily rates up to three months in advance, spaced at seven-day intervals, enables tracking of trends and rate movements. Do your advertised rates mean that you are peeing against the wind or there is need to adjust those prices? Tools like Rateview.co.uk provide clear insights into price shifts by comparing demand across your area. For as little as £10 a week, owners can monitor if their rates align with market conditions or need adjustment.
Despite persistent inflation, small hotels can remain competitive by leveraging strategic pricing and monitoring tools. These adjustments are essential to stay resilient in a volatile market.
