European Hotels Feel the Recession”s Bite
July 1, 2009 – 10:17 amEuropean Hotels Feel the Recession”s Bite.
That ploy was to advertise a special offer for a free night to anyone who stayed two consecutive nights from May to July. To advertise free breakfast at its Holiday Inn hotels in the U.K., IHG drove a food truck through central London and distributed free breakfast to passersby.
Spanish hotel operator NH Hoteles SA, is luring tourists to Europe this summer with a weekend special that includes a free minibar and late Sunday checkout as well as a number of 50% discounts on advance bookings.
Accor SA, whose hotel brands range from Motel 6 and Ibis to the Sofitel luxury chain, will let travelers book rooms online at steep discounts from May 27 to June 1.
During the last recession, say analysts, many hotels cut room rates. But that has a significant broader impact on revenue and profitability because it takes a long time to get rates back to prerecession levels.more
