Industry experience has proven that declines both in occupancy and in average room rate can be recovered by aggressive rate-cutting.

Question

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Aggressive rate-cutting can lead to a short-term increase in occupancy but often results in long-term revenue loss and devaluation of the brand, making recovery more difficult. Strategies focusing on value addition and maintaining rate integrity tend to be more effective for recovery.

Industry Experience Has Proven That Declines Both in Occupancy and in Average