San Diego, CA, March 27, 2024 (GLOBE NEWSWIRE) -- Cloudbeds, the hospitality management platform powering more reservations and happier guests for independent lodging businesses around the globe, urged independent hoteliers to look beyond raising their average daily rates (ADR) as a hedge against high inflation.
The guidance comes from Cloudbeds’ 2024 State of Independent Lodging Report, which revealed lodging businesses can no longer rely on ADR increases as the main driver of hotel performance. Instead, they must proactively adopt additional strategies to offset the rising operational costs.
Despite many hotels already streamlining their staffing models and trimming housekeeping services, Cloudbeds emphasizes that independent hoteliers can explore further avenues to reduce costs and increase pricing, particularly in food and beverage services, parking, ancillary fees, and non-refundable rates.
Sebastien Leitner, VP of Partnerships at Cloudbeds, said: “While hotels have experienced record ADRs, it hasn’t been enough to offset a hike in operating expenses and global inflation. Hoteliers face a critical question going forward: if travelers are becoming increasingly price-sensitive, how much longer can pricing be pushed to offset rising costs? ADR is no longer an inflation hedge. Instead, we’ll see independent businesses turn towards streamlined operations that maximize profitability and delight guests.”
The technology provider highlighted that room rates surged by 20% in 2023 compared to their 2019 levels. However, amidst this increase, global inflation peaked at 8.7% in 2022 before declining slightly to 6.9% in 2023. Consequently, the rising operating expenses outpaced revenue growth for many independent hotels.
Cloudbeds’ findings are grounded in data from 10,000+ independent properties, encompassing boutique hotels and guest houses, B&Bs, and hotel groups in over 100 countries across North America, Latin America, Europe, and the Asia-Pacific region.
For comprehensive global insights into the independent lodging landscape in 2024, download a free copy of Cloudbeds’ annual ‘State of Independent Lodging Report’ at https://www.cloudbeds.com/hospitality-industry-report.
ENDS
About Cloudbeds
Cloudbeds is the leading platform redefining the concept of PMS for the hospitality industry, serving tens of thousands of properties in more than 150 countries worldwide. Built from the ground up to be masterfully unified and scalable, the award-winning Cloudbeds Platform brings together built-in and integrated solutions that modernize hotel operations, distribution, guest experience, and data & analytics.
Founded in 2012, Cloudbeds has been named a top PMS, Hotel Management System and Channel Manager (2021-2024) by Hotel Tech Report, World’s Best Hotel PMS Solutions Provider (2022) by World Travel Awards, and recognized in Deloitte’s Technology Fast 500 in 2023. For more information, visit www.cloudbeds.com.
