Match your strategies to the current economic climate (free strategies included)

It’s the middle of 2026 and we’ve already faced some difficult headwinds this year. Every week, clients are coming to me wanting to talk about the economic climate and the impact it is having on their broader business.

So now feels like the perfect time to share my personal insights on how I view the state of the nation for tourism, hotels and management rights businesses. Now, I’ll note, I am no economist. But I do have an MBA in hospitality and tourism, a Bachelor of Business in international tourism management, and I’ve been plying my trade for the better part of the last 20 years (wow Chris, you look so young! Thanks, I started in hotels at 15).

This article was first published in the June edition of Resort News read it HERE

Some of our clients are concerned. The budget is not favourable to investors, cost-of-living pressures continue to rise, and increasing rents are making permanent rental returns more attractive for investors. Whether it eventuates is anyone’s guess, but the stress and uncertainty it creates are very real.

So, what is my take on this?

For starters, good operators with strong strategies will always persevere through challenging conditions. Some macroeconomic events (like COVID) can have a profound impact on business; however, what we are experiencing now is certainly not at that level.

The current headwinds are going to impact guests travelling; they already are. But there will always be enough guests (unless we have one of those big events) to ensure your property gets more than its fair share. However, you can’t just leave your strategies as they are and hope for the best.

No. You need to get on the front foot, change your revenue strategies and your marketing strategies. Review the data trends and equip yourself with the necessary information to have the hard conversations.

As always, when we get to a position like this, investors in holiday letting pools will panic. How can you help to quell their fears? First, performance will outweigh everything, but a knowledgeable manager will also achieve the same result.

Review your revenue strategies

Revenue strategies are an ongoing, breathing beast. You should be updating them regularly anyway; however, this is the perfect time for a full strategy rework

When markets soften, guests are looking for deals. This becomes hard in a management rights environment when any reduction to the ADR impacts the owners’ returns, especially with increasing cleaning and linen fees.

My pro tips

1: Longer lengths of stay are your sweet spot. Look to reduce the pricing on your longer stays, such as five and seven nights. Cleaning fees have less impact on these stays, so a more attractive rate over these stays can drive occupancy without hurting the owners’ hip pockets.

2: Look to yield your rates down further out to ensure you remain attractive in the longer lead windows.

Arm yourself with market data

Owners will come to their property managers looking for clarity and reassurance that their asset is in great hands. And it is. You’ve read this article already, so you know what to do!

How do you get the data?

There are several industry sources, but the OTAs have instant, market-level data that is normally enough to satisfy even the toughest owners. Log into your Booking.com and Expedia accounts and view their analytics tabs. Get the following pieces of data: lead time (or booking window), cancellation rates, length of stay and average daily rate trends.

Here are some common questions you will get and how you can respond to owners:

“My portal shows no bookings next month.”

That is okay the average lead time has shortened to X days. This means that we should see bookings coming in soon. We have been tracking the market and we are priced properly.

“The booking price this year is cheaper than last year!”

These things happen from time to time. We would love to have the rate growing each year, but the market is seeing a shift in ADR trends as cost-of-living pressures increase and guests chase value. We have had to adjust our pricing strategies to ensure we remain competitive in the wider market and drive occupancy while these pressures exist.

“I had a lot of bookings that aren’t there anymore. What is happening?”

The market is shifting. We are seeing cancellations increase by X percent compared to last year due to current economic pressures. We are monitoring cancellations closely, but rest assured we are across the market pricing and we are confident your property will resell.

Up your marketing game

Now is the time to ramp up your marketing. Your website should be selling specials and converting those landing on your direct site (remember the billboard effect we have spoken about before: drive traffic to your site from OTAs).

You need to market these specials effectively if you are adjusting your five- and seven-night rates (as I said above). Now is the time to call this a special. You might be running a stay five, pay four campaign or stay seven, pay five. Either way get options for customers to book on your website.

How do you drive customers to your site?

Your existing database is a great start, or you can use Meta Ads, just make sure you have a Meta pixel installed.

What is a pixel?

Guests landing on your website will be shown ads that you are running. It helps drive conversions and retarget customers correctly.

The market will always go through its natural difficulties. What sets you apart is how you react to changing conditions and educate those who rely on your market knowledge.

My thoughts…

The world does not end when the economy changes. It is where the cream rises to the top. Now is the time to show your investors why you are the best manager for their investment.

Read the latest edition of AccomNews HERE