Hotels lowering standards, prices and star ratings

It won't come as a surprise to hear that hotels all around the world are suffering. The hotel industry is becoming a survival of the fittest, and as some hotels simply close for good, others are taking a more practical route to get out of trouble.

Luxury hotels have been lowering their prices, but many of them have hit a limit on how low they can go. Most have tried adding creative promotions, and even handing out dining coupons or other incentives, but eventually they'll need to cut other corners to make ends meet.

By removing amenities like fresh flowers, free drinks, newspapers, magazines and free gifts for elite guests, hotels are saving a fortune. At the same time, the removal of these amenities means the hotel can no longer hang on to its current star rating. What used to be a four or five star hotel, suddenly becomes a three star hotel, with a three star price.

I'm sure this solution may work for the short term, but by removing a star (and the services attached to that star), hotels will also drop out of view of people looking for a luxury hotel. Removing services that used to be included with a room will also annoy loyal returning guests who expect a certain level of luxury. And finally, turning your once upscale property into a not-so-luxury hotel also damages your brand, something that may take years to fix. Then again, I'm sure it beats the alternative of having to fire everyone and close.

Filed under: Hotels and Accommodations