Filed under: Business, North America, United States, Hotels and Accommodations, AirlinesMarket conditions are turning for the travel and hospitality industry. More people are leaving home behind for a while, and they are again willing to open their wallets to do so. Especially in the highly coveted business travel sector, seats are filling and rooms are being occupied. So, it would stand to reason that airlines and hotels would move to address the increase in demand. Unfortunately, accommodating growth can be risky in these industries. Every step must be made carefully and deliberately, with a plan for taking existing demand to a higher level.
Think about your local grocery store. If cans of corn start to sell aggressively, the store can examine the trend and order more for the following week. It may have to allocate a bit of extra shelf space, perhaps at the expense of canned peas The risk isn't that high, though, because demand can be handled in smaller increments.
The core product isn't as flexible in the travel and hospitality business. As people look to book more rooms or flights, a hotel or airline can't simply add a bed or a seat. Airlines can add routes (or restore those that have been cut), but that creates a new problem.
Continue reading Airlines and hotels: the travails of accommodating a recoveryAirlines and hotels: the travails of accommodating a recovery originally appeared on Gadling on Tue, 26 Oct 2010 08:00:00 EST. Please see our terms for use of feeds.Permalink | Email this | Comments
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