What is the definition of Distressed Inventory in the hotel industry?
Distressed inventory is used in hotels to refer to rooms that are not predictable to be sold at full price. For these rooms, hotels often considerably decrease prices to support consumers to book last-minute and to shun their rooms going unoccupied.
Inventory can turn into distressed for a number of reasons, but the most ordinary is cancellations in close proximity to the booking date.
Also, a hotel that is full to competence is good for commerce in other ways.
It correspond the feeling that there is constantly high demand for rooms there. This can get better a hotel’s status both nearby, regionally and nationally (and sometimes even internationally).
And don’t forget, when people stay at a hotel, they don’t just pay for the room. Other revenue can be generated from food services, leisure activities and throughout other ancillary in-house spending. Sometimes, the discounted quantity of money on a reduced price room can be made up through the late-coming guests’ extra expenses.