Staying Grounded: Strategies for Market Volatility
By Kimberly Erwin, Principal at Lotus Marketing | Hotel Marketing & Commercial Strategy
In times of economic uncertainty or market volatility, it’s natural to feel pressure—especially in the hotel industry, where demand can shift quickly and dramatically. But for hotel marketers, now is not the time to panic. It’s a time to pivot with purpose, focus on business fundamentals, and make thoughtful, strategic decisions that align with broader commercial goals.
Remember: Marketing is not a cost center—it’s a growth engine. When aligned with commercial strategy and business needs, it becomes one of your most powerful tools for stability, resilience, and long-term success.
Adapt, Don’t Retreat
We’ve seen this story before. During the early stages of COVID-19, the hotels that weathered the storm most successfully were the ones that adapted quickly. When corporate travel and large groups disappeared almost overnight, some properties pivoted their focus to social groups, drive-market leisure, or long-term stays. Others leaned into outlets like restaurants, spas, or unique local experiences to drive ancillary revenue.
In each case, the winning approach wasn’t to go dark on marketing—it was to shift it. Redirecting budget to emerging revenue streams gave these hotels a lifeline when their traditional sources dried up.
The same principle applies today. If sales is reporting a slowdown in one segment, ask where there’s still potential.
“Hotels that win in volatile markets are the ones that adapt their entire commercial strategy with intention. It’s about recalibrating your approach across sales, marketing, and revenue to meet where demand is moving. Resilience comes from alignment, not working in silos.” Brian Hicks, President and CEO of HSMAI.
Be Strategic, Not Reactionary
Above all, make business decisions based on facts, not fear. Emotional, knee-jerk reactions rarely serve long-term goals. Instead, lean into a measured, data-informed approach. Monitor your KPIs closely. Stay in regular sync with your revenue and sales teams. Keep your marketing plan agile but grounded.
Uncertain times call for clear thinking and smart strategy. By staying focused on your hotel’s goals, evolving your marketing approach accordingly, and using data to guide your choices, you’ll not only weather the storm—you may come out stronger on the other side.
Marketing Plans Should Reflect Business Goals
Marketing is not an isolated function—it’s an extension of your hotel’s overall business strategy. Your marketing plan should always reflect your current goals, whether that’s driving leisure bookings, increasing group revenue, or growing ancillary income through outlets and services.
When market conditions shift, it’s not a sign to toss out the entire plan. Instead, it’s a signal to refine it. Revisit your goals. Are corporate bookings dipping? Is demand shifting toward leisure or social events? The role of marketing is to support those changes in real time—reallocating spend, adjusting targeting, and updating messaging to stay aligned with your revenue priorities.
Marketing Plans Are Meant to Evolve
Let’s be clear: marketing plans are not static documents. They’re living, breathing frameworks designed to evolve with your business and the market around it. This holds true during boom times and during downturns. A flexible marketing strategy is a strong one.
Blindly slashing marketing budgets in response to “what-if” scenarios doesn’t set a hotel up for success—it limits visibility, weakens your competitive positioning, and often results in lost market share that’s hard to regain. Instead of reacting emotionally, respond thoughtfully. Look at the data. Talk to your sales team. Understand where demand is shifting and explore how marketing can help meet it.
