Monthly Archives: March 2015

2015 New Year’s Eve

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New Year’s is always a great time for tourism and for most hotels it is the most profitable day of their year. Here is a look at some of the winning rates across the United States during New Year’s 2015.

City Hotel Room Description Rate
Las Vegas Circus Circus Hotel & Casino west tower king $5,689
Minneapolis Radisson Plaza Hotel Minneapolis city view king premier room $3,500
Kissimmee Studio 6 Orlando Kissimmee plaza room $3,195
Orlando Hampton Inn Convention Center executive room $2,995
Davenport Sunsplash Vacation Homes deluxe room, 1 king bed $1,695
Louisville Days Inn Suites Louisville Airport Sw superior balcony room with one king $1,325
Orlando Springhill Suites Lake Buena Vista – Marriott Village superior room, 1 king bed $1,295
Kansas City Courtyard By Marriott Kansas City Airport guestroom 1 king or 1 queen bed $760
Nashville Regency Inn And Suites viceroy king room $755
Miami Beach Blue Moon Hotel deluxe room $649
Hialeah Ramada Inn Miami Airport North standard room, 1 king bed $600
Miami Courtyard Marriott Dolphin Mall junior suite $431
Overland Park Springhill Suites By Marriott Overland Park standard room, 1 king bed $429
Blue Springs Super 8 Blue Springs standard room, 1 queen bed $380
Arlington Blue Cypress Hotel standard room, 1 queen bed $341
Dallas The Park Inn By Radisson Dallas Love-field standard room, 1 king bed $259

Further analysis of NYE room rates show that airport hotels are able to maintain a very high room rate in the days following New Year’s, however, holiday destinations like New York City, Los Angeles and Las Vegas make out the best in the days leading up to and after the holiday.

One very interesting fact to consider when looking at the yield on these rooms is that most of these rates were available on December 30th. Many hotels sold out weeks in advance of New Year’s, however, experienced hoteliers would do well to stagger their availability and watch the market increase its yield as demand spikes close to the event. This is especially true for airport hotels, who are likely to end up with guests who have extended their stay or made last minute reservations to celebrate the new year.

So, what can be learned from this micro-economic endeavor? Analyze the holidays and events in your area and see how room rates trend leading up to that event. If your hotel has a competitive advantage related to the event, you would do well to yield high and leave some rooms empty in the 72 hour window before the event. It may feel a little bit like “playing chicken” but it will likely yield major rewards. Having a competitive rate analysis tool is essential in executing this type of strategy.

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