NEWS Topic of ThE moNTh markETiNg oN-liNE pulS Spa
Vip iNTErViEW rEporT coNcEpT & DESigN TEchNology & EquipmENT
 rEPort
the most prominent hotel projects are the in Warsaw’s ADR. YTD August 2009 ADR in
The report of Cornell Center for Hospitality Research
Sofitel (2010), Shangri-la (2010), Kempinski Warsaw is €71.34, down -21.3% y-o-y. Over
(2011) and Four Seasons (2014). the same period occupancy decreased to
58.8% (-9.4%).
Competitive Hotel Pricing
Warsaw Although Euro 2012 moves ever clos-
Warsaw has been one of the last re- er, the hotel development pipeline does
gional markets to experience a downturn not appear too excessive. The construction in Uncertain Times
with performance indicators on the slide of the Garden Inn by Hilton in Mokotow is
from October 2008. Nevertheless, Warsaw still expected to be followed by a Marriott Ren-
This analysis of the pricing (ADR),
photo: shutterstock
achieved a RevPAR growth of 4.4% in 2008. aissance at the airport and a Hotel System demand (occupancy), and revenue
Warsaw’s 4- and 5-star market suffered from Prestige in the city.
(RevPAR) dynamics in the U.S. hotel in-
oversupply, following intensive development
dustry for the period 2001 through 2007
in the early 2000s. It has arguably taken un- All hotel performance data sourced
demonstrates the potentially negative
til 2008 for this oversupply to be absorbed, by STR Global
consequences of attempting to main-
although we are once again seeing a drop
SEND furThEr
tain market share by offering prices be-
low those of direct competitors.
CATHY A. ENZ, LINDA CANINA, MARK
STR Global Hotel Performance Data Central and Eastern Europe
LOMANNO
80 140
This seven-year study examined the
70
120
outcomes of pricing behavior on total rooms
60
100
revenue and occupancy for hotels and
their competitors in both bad times (2001-

%
50
80
a
t
e

i
n

E
u
r
o
2003) and good (2004-2007). The results are
p
a
n
c
y
40
a
i
l
y

R
c
c
u
60
the same in both periods. Hotels that offer enue performance than your competitors is
O
e

D
30
average daily rates above those of their to have higher average rates. The findings
40
A
v
e
r
a
g
20 direct competitors experienced lower oc- suggest that lodging demand may be in-
cupancies compared to those other hotels, elastic in local markets, and hotel operators
10
20
but recorded higher relative RevPARs. For may wish to resist the pressure to undercut
0 0
Bratislava Bucharest Budapest Prague Vienna Warsaw
67,008 hotel observations, this pattern of competitors when possible.
CEE Cities demand and revenue behavior was con- The whole report is available on the
ADR August YTD 08 ADR August YTD 09 Occ. August YTD 08 Occ. August YTD 09 sistent for hotels in all market segments, from website of the Hotel Profit Club. Do not hes-
luxury to economy. Overall the results sug- itate to read it!
Source: STR Global gest that the best way to have better rev-
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