Operators have predicted European hotel groups will embark on new pricing strategies to boost room occupancy in the post-summer season.
Classic Collection Holidays managing director Nick Munday said with Europeans returning to work next month, hoteliers are likely to consider price cuts, or a range of deals to fill rooms, as rises in fuel prices and stagnating economies start to affect consumer confidence across Europe.
Hoteliers cannot rely on the high-spending US market as the economy across the pond experiences problems and the US election keeps Americans at home.
Munday said hoteliers on the Continent are currently surviving thanks to business generated by Europeans who live within the eurozone. However, as the peak season comes to an end, Munday predicted hoteliers will be offering discounts of up to 25%.
“The trade is going to have a lot more deals, the hoteliers are holding on to the very last minute before crashing the prices,” he said.
Kirker Holidays commercial and product director Andrew Layard questioned whether hoteliers would slash prices, but said they are already offering deals, including free room upgrades and dinners worth up to €100.
He said: “In a difficult time, hoteliers are looking to add value instead of cutting their rates, which would make it harder for them to hit their [sales] targets.
“It is a new experience for us and the first time we’ve seen this kind of proactivity.”
Superbreak national sales manager Graham Balmforth agreed the trade can expect late deals, but said they are more likely to be price led.
“The hoteliers are holding on to the very last minute before crashing the prices”