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Capitalizing On Changing Hotel Trends In 2020

By Jimmy Davidson on December 10, 2019 8:36 AM

As 2019 draws to a close and the travel industry prepares for the new year, little is certain in an era of rapid change and technological growth. 

Thankfully, however, informed industry members can rely on several general trend predictions to capitalize on next year's potential for savings and growth. 

Dynamic Hotel Pricing

Dynamic pricing refers, in this case, to hotels deriving pricing from a fixed percent of the best available rate, allowing hotel managers to increase their rates. Though this practice generally works in the buyer's favor throughout quarters one and four of the year, it can be a hindrance in quarters two and three. 

The ideal hotel situation includes a static rate in top cities with dynamic pricing in secondary or tertiary markets.

Travelers should be aware of and familiar with the practice of dynamic pricing to avoid the surprise of changing hotel rates that once remained flat. 

Aggressive Rate Increases And Minimum Requirements

Hotels have been returning offers with aggressive rate increases above the expected 2-4% raise recently. Our World Travel Hotel Consulting Analyst, however, has been able to negotiate marginal increases for our clients in some cases. 

These rate increases have paired with stricter minimum room night requirements at many hotels.

Understanding Major Events and Value-Added Amenities 

Hotel buyers should be aware of major events with the potential to affect rates in their key cities and markets. Brief research can be extremely helpful in anticipating and possibly avoiding inflated rates. 

Buyers should also consider value-added amenities, such as breakfast, parking, relaxed cancellation policies and wifi, that can and should be considered in the already negotiated rate. Travel management companies also feature a hotel program that should be consulted when negotiating rates outside of the buyer's usual market.


Our team is always available for our clients to assist with negotiations and manage the process of securing the best possible hotel rate.

Jimmy Davidson

Written by Jimmy Davidson