classy hotels

Almost every industry has been affected by the economic downturn over the last couple years. In the hospitality industry, this has been obvious because much of the business comes from customers’ disposable income. One of the trends that has been influencing hotels, restaurants, and leisure is the demographic that they are now catering to. Wealthier families now compose a larger part of the consumer base than middle-class or poor families. In 2007 according to the 2010 Performance Monitor by D.K. Shifflet & Associates, 46 percent of all occupied hotel room nights were from guests in the under $75,000 income level. By 2010, this number decreased to 42 percent, while 11 percent of all hotel room nights in 2007 were from guests in the above $150,000 income level. This number increased to 14 percent in 2010. With this data in mind, companies need to figure out how to maximize revenues and attract different segments of the population. Advertising deals or discounts could attract more middle-class clients but another option is keeping prices high and trying to keep that upper-class clientele. This decision can by companies depending on revenue, location, and the companie’s purpose.