In the hotel industry, the term “low demand” refers to the period where the demand for hotel bookings drop. Here the demand for hotel rooms is much lower than normal, and they can be classified under two categories, namely seasonal and accidental low demand. 

DJ Rama – An insight into seasonal and accidental low demand 

DJ Rama is a respected and leading name in the hotel and hospitality industry in the USA. He is the Vice President of JHM Hotels with many years of invaluable experience under his belt. When it comes to the low demand periods of hotels, he says that low seasonal demand comes in every year. He says there are several hotels and other places for accommodation that experience low demand for hotel rooms during the weekdays. They are generally booked during the holiday seasons or weekends. Those hotels that are focused on business customers often witness a rise in hotel bookings during the middle of the week.  

What are the causes of accidental low demand for hotel rooms?

When it comes to accidental low demand, this might arise due to various factors. For instance, the present scenario of the Covid-19 virus is a good example of an accidental low demand for hotel bookings. Another reason could be political instability in an area or a financial crisis like the one that took place in 2008, where people have less money to spend. Businesses in the hotel and hospitality industry need to contend with a lot of uncertainty during this time.

How can you optimize profits and revenue during these periods of low demand? 

The following are some simple tips that owners of hotels can embrace when it comes to the optimization of revenue during periods of low demand-

• Forecasting and anticipating future events with the help of available information from reliable sources.

• Monitor the pricing strategy in detail, and you should reduce the rates for hotel rooms in order to attract customers during this period.

• Make sure you optimize all your distribution channels and make your hotel easy to locate and book for customers. 

• The advertising and marketing strategy for your hotel needs to be optimized to appeal to the targeted market. 

• Rely on your customer relationship database to identify and reach out to loyal guests. 

• Focus on corporate and business clients for meetings and events during the periods of low demand. 

• Enter into joint ventures with popular tour operators for hotel bookings 

• Offer attractive packages that attract your targeted groups 

DJ Rama says that hotel owners must undertake some or all of the above steps when they face periods of low demand. You need to be informed so that you can make accurate forecasts and decide upon a competitive pricing strategy that will successfully work for your hotel business. Last but not least, make sure that you focus on exceptional customer service so that guests that stay once in your hotel keep on coming back to you again and again!