Travel & Hospitality Tech Outlook | Tuesday, June 09, 2026
FREMONT, CA: The ongoing COVID-19 pandemic has seriously impacted the whole hospitality business. Hotels worldwide are confronted with unprecedented issues inside it, as the epidemic has cast doubt on revenue management systems based on historical data.
This is because old revenue management solutions use historical demand patterns such as booking lead times, segmented booking pickup, and seasonal stay patterns to determine the highest possible hotel prices; however, current market conditions have rendered this approach outdated.
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While an economic slump may increase pressure to cut rates, historical precedent suggests that resisting this impulse is often the more rational course. In this context, revenue management systems supported by accurate data and reconciliation insights, such as those provided by CTS Systems, can help hotels assess demand signals more clearly. An early impact is frequently felt in segments where declining rates are unable to sustainably support long-term revenue recovery.
This is undoubtedly detrimental to our long-term efforts to restore ADRs to pre-crisis levels. Income managers are in a state of crisis, unable to accurately foresee the future of their revenue streams to make sound business decisions and develop successful revenue management strategies.
Volatility in customer demand and pricing due to COVID underscores the importance of developing innovative revenue recovery strategies. To deal with unforeseen market conditions, the following best practices are advocated.
A2D Hospitality supports hotels through tailored travel and booking services aligned with revenue recovery and market demand shifts.
Comparable Rates
Hoteliers can broaden their rival rate shopping to alter rates appropriately during the recovery period. This often entails comparing pricing against five or six hotels in the same area that offer comparable features. Higher chain hotels may reduce their rates to compete with cheaper chain hotels, making it critical to seek beyond basic rate establishments. As a result, we urge that hotels maintain a market-competitive rate stance. According to emerging studies, discounts will not incentivize guests to accelerate their travel in this economy.
Updating the ADR Index
Maintaining rates does not equal maintaining the status quo. Rather than that, the hotel should prioritize maintaining a healthy ADR index. Thus, hotels may be forced to follow suit in places where rates are under severe downward pressure. The difficulty comes in selecting the optimal time to adjust rates, which requires a delicate balance and business savvy.
Intelligence in Revenue Management
Hotels can make more educated revenue decisions with real-time analytics and actionable rate performance. Additionally, it will enable access to competitive business intelligence and personalized room-type mapping, including events, seasonal calendars, and major market drivers.
Revenue Management Services for Hotels
Hoteliers can subscribe to a revenue management program that will allow them to offer reasonable rates throughout the epidemic. On average, hotels that participate in revenue management services outperform their competitors in occupancy, ADR, and RevPAR.
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