for a sobering review of the state of play in the lodging world.
Quoting the article, "RevPAR decline of 12.3% during the week ended March 21 was comprised of a 4.7% decline in occupancy, and an 8.0% decline in average daily room rate (ADR)."* The 8.0% decline in ADR is good for consumers. Decreasing room rates packaged as e-Breaks, Pointsavers, AAA rates, Senior Citizen rates and Government rates is GOOD for the business and leisure travel community. In the bigger picture, a sharper decrease in ADR might actually lower the % decline in occupancy.
For example, the AAA monthly magazine features road trip tips along with discount coupons for Oil Change, Brake Service, etc. In February, the Oil Change offer was $29.95; in March it's $24.95. On a hunch, postponing the oil change made sense, only to get a better offer for the same package of services. Later in the week, the ten bucks saved may replace that rear window wiper blade on my SUV.
Correspondingly, if a full-service Marriott reduced it's AAA rate let's say by $25, I might use the actual or perceived savings to splurge on buffet breakfast for 2 rather than many other breakfast options that are available for less. OR, what if Marriott offered 2 BF vouchers as an Arrival Gift? THAT, would work as an incentive, too.