Can Hotels Survive the Convention Crisis?
As hoteliers put to rest a year of upheaval, uncertainty, and financial strain, the predictions are already in for 2010. A PKF Hospitality Research study shows that despite the industry facing an uphill battle, occupancy rates are expected to rise 0.4 percent in 2010. Okay, not great news – occupancy levels fell an average of 8.9 percent in 2009. But the ever-so-slight increase means one thing for anxious hoteliers – the modest increase is the first year-over-year increase in the last eight quarters.
As mentioned previously, a number of hoteliers are facing nonrenewal notices and scrambling to locate acceptable coverage. A major carrier has decided to pull out of the hotel/motel business, leaving thousands of insureds searching for another carrier. Agencies handling these policies are forced to halt any new business marketing as they themselves go on a search for a credible, stable replacement for their policyholders’ business insurance.
Look out, hoteliers – a new trend is emerging in the hotel industry. A Singapore-based hotel has just launched its women-only floor of hotel rooms. The rooms, housed behind security doors with limited access, are stocked to the rafters with girly accoutrements. Luxury hotels like the 
Hoteliers have see it all, heard it all, and dealt with it all. It would be hard to find a hotel manager or owner who hasn’t had to ask a guest to leave due to bad habits or behavior. But what happens once you clear the hotel of the bad guest can you breathe that sigh of relief?
Hoteliers whose hotel businesses work with online booking agencies understand all too well the dilemma. Hotel booking sites like Expedia and Hotels.com sell hotel reservations to customers, hand over a discounted price to the hotels, and pocket their profits – all good business. But the dilemma arises when the booking companies go to pay taxes on the hotel rooms they’ve sold. And that’s where the local and state governments are getting involved.