Fall Outlook for Canadian Hotels: Adapting to Consumer Behavior Shifts
As summer winds down and fall approaches, Canadian hotels face unique challenges and opportunities. The transition from late August to early September is marked by significant consumer behaviour shifts, influenced heavily by the back-to-school season. Understanding these shifts and adapting strategies accordingly can help hotels maintain steady occupancy rates and attract guests even as the peak travel season comes to an end.
Foodbuy chatted with Nicole Nguyen Senior Vice President, CBRE Limited (Commercial Real Estate Services), who noted that “Once the Labour Day weekend passes and the kids go back to school, you really see that shift in business. Leisure customers pull back, except the seniors who like to travel after the kids have gone back to school.” This post-Labour Day shift sees a decline in family vacations as families prepare for the new school year, leading to lower occupancy rates in late August and early September. However, seniors continue to travel, taking advantage of quieter conditions.
Nguyen also highlights the resurgence of business travel: “We do see some leisure travel continuing, but less so from families. But then you get the return of your business travel. People get back to doing meetings, they get back on and off planes to go see clients, or corporate relationship, business development, etc”. She adds, “Also, meetings pick up again in the fall, primarily September, October, a little bit in November, then you get a little burst right around the holiday season as people plan end-of-year parties and corporate gatherings.” With summer vacations over, business travel often picks up, providing a crucial opportunity for hotels to attract this demographic.
Vince Sgabellone Foodservice Indurty Analyst from Circana, shared similar insights on consumer behaviour in the travel and leisure industry as we transition into the fall season. “Family travel drops off, and business travel picks up,” noted Sgabellone. This transition significantly impacts hotel operators and food service providers, requiring them to adjust their strategies accordingly.
Sgabellone also discussed back-to-school trends, particularly in the context of the education sector. “College and university visits are up 12% compared to 2023,” he revealed, though he acknowledged this is still below pre-pandemic levels. He also pointed out that categories like fashion, housewares, electronics, and office supplies see a surge during the back-to-school season as students prepare for the new academic year. The back-to-school period significantly impacts tourism patterns.
Hotels can adapt to these seasonal changes through several strategies. Families prioritize educational needs, leading to fewer long-distance vacations. However, this period also brings opportunities for hotels to cater to different demographics and needs. By offering special deals and packages tailored to families looking for one last trip before school starts, hotels can attract late-season family travelers. Hotels can capitalize on the increase in business travelers by offering amenities and services that cater specifically to these types of trips, such as high-speed internet, conference rooms, and early breakfast options.
The introduction of dynamic pricing models to attract different types of travelers and offering discounted rates for last-minute bookings or weekend stays can also help fill rooms. Upgrading amenities that appeal to business travelers, such as co-working spaces, meeting rooms, and business centers, can attract professionals on the go. Hosting family-friendly events or offering special activities for children can entice families looking for a quick getaway before the school year begins. Tailoring marketing campaigns to highlight the unique offerings of the hotel during the fall season can attract different demographics. Strengthening loyalty programs with fall-specific rewards and promotions can encourage repeat visits from loyal customers and attract new members.
Foodbuy plays a crucial role in helping hotels adapt to these seasonal changes. By providing high-quality, cost-effective procurement solutions, Foodbuy can help ensure that hotels offer top-notch services and amenities without straining their budgets. Foodbuy can help procure ingredients for seasonal menus that appeal to guests’ preferences during the fall, including comfort foods, warm beverages, and locally sourced ingredients. As hotels adjust their strategies, managing costs becomes essential. Foodbuy’s procurement services can help hotels find the best deals on supplies, ensuring they maintain profitability even during off-peak seasons.
As the fall season approaches, Canadian hotels must adapt to the changing consumer behaviours influenced by the back-to-school period. By implementing flexible pricing, enhancing business amenities, and leveraging Foodbuy’s procurement services, hotels can continue to attract guests and maintain strong occupancy rates. Understanding these trends and preparing accordingly will position hotels for success in the late summer and early fall months.