In the run up to the American state of Texas being admitted into the Union there is an increase in the hotel industry. But for those hotels in Texas who have survived the battering of the local economy, are they going to be able to make it? It seems a little unlikely.
I am not convinced that the Texas hotel industry is going to be made stronger by the current economic conditions. Instead I believe that hotels in Texas will be able to survive in spite of the current economic situation, because the state’s hotels have established an excellent reputation and they are in great demand.
And we all know how well the tourism industry works in Texas.
The country is full of people who love to travel to the Texas region of the United States and many of them will book their hotels at some of the finest hotels in the country.
Yes, some of these hotels will be able to recover their previous prices. But with the economy the way it is the demand for hotels in Texas is likely to remain strong.
But when you look at the future of the hotel industry, it becomes clear that the demand for hotel accommodation is set to increase. So, how is the industry going to cope with this increase in demand?
One reason hotels are expected to make a profit is because the price of fuel has fallen significantly and hotel owners will be able to use this opportunity to gain some additional cash. Some hotels have already adapted to this by raising the prices of room service for their guests.
Another way the hotel industry is set to recover some of the money lost in the state is by introducing more hotel rooms
. And hotels that have announced their plans to increase their capacity are already receiving requests from those wishing to reserve rooms.
However, as the demand for accommodation increases, the competition for hotel rooms is expected to become tougher. Many hotel owners will want to add new facilities to their hotels such as dining rooms, bars and other entertainment facilities, which are likely to mean a higher price for hotel rooms.
And if they cannot afford to upgrade the hotel and need to stay within their budget, they will find that they will be unable to make a profit. So, that leaves the market, the hotel market, facing a question of supply and demand.
The pressure for hotel owners to raise their prices is expected to increase and so will the need for hotel accommodations.
- This is going to mean the need for more hotel rooms.
- The conclusion is that there are more business opportunities for hotels in Texas but the future for this industry is uncertain.
- But the people who have taken the steps to boost the economy will not be left behind.