Every revenue manager knows that feeling. You open the pickup report, expecting the usual steady climb… but nope.
NB: This is an article from Topline Revenue, one of our Expert Partners
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Crickets. Bookings have slowed to a trickle. Now the GM wants answers. The owner wants action.
And your knee-jerk reaction? Drop rates. Fire off email promos. Maybe toss in a free breakfast and a room upgrade – anything to get bookings moving again.
Stop. Breathe. Step away from the panic button.
Because here’s the thing:
Booking pace naturally ebbs and flows.
And overreacting can hurt your revenue more than a slow Tuesday ever could.
Don’t Slash Rates Just to Feel in Control
Slashing rates across the board just because your pickup is soft is like noticing one tire is low and deflating the other three to “even it out.” It might feel like action, but it’s the wrong kind of action.
The Real Risk? Overcorrecting.
When you drop rates too fast or too far:
- You teach your market to wait for discounts.
- You condition guests to book last-minute.
- You compress your ADR and mess with your future comps.
- And you leave money on the table – especially if demand bounces back mid-week and now you’re stuck with a bargain rate.
Bottom line: Panic pricing isn’t strategy. It’s revenue roulette.
Step 1 – Diagnose
Before doing anything, figure out why your pace slowed down. Don’t just assume the worst or hit the discount button.
Here’s your quick diagnostic checklist:
Is it just a seasonal dip?
Every market has natural soft spots. Maybe last year you had an early Easter or a random citywide event that boosted this week’s comps. If the compset looks flat too, this could just be a normal lull. Don’t torch your rates over calendar noise.
Did a competitor just drop rates?
Check STR or rate shopping tools. If the hotel across the street suddenly dropped $20, figure out why. Are they desperate, or do they know something you don’t (like a group cancellation)? If they’re panicking, you don’t have to follow. Stay steady and monitor demand elasticity.
Did something happen to your visibility or reviews?
- Did your Google Hotel Ads budget run dry?
- Did a negative review just hit TripAdvisor?
- Did someone accidentally pause your OTA listing or shift the rate plan?
Sometimes the slowdown isn’t demand-related – it’s you being invisible or suddenly less desirable.
Are you comparing to a unicorn year?
If your YOY bookings number is tanking, ask why last year was strong. Maybe Taylor Swift was in town. Maybe you had a citywide that didn’t repeat. If your base year was a one-off high, it’s unfair (and unhelpful) to compare against it.
