As we are now in the second month of 2025, the Canadian hotel industry is growing and thriving and the focus is especially on Western Canada. Come, let’s have a look at the recent trends and ways that hoteliers are using to grow their sales and remain strategic in the marketplace.
Western Canada’s Hotel Market is on Fire
Vancouver captured a lot of attention with large concerts (hello Taylor Swift!) and tech conferences last year, but this year the city plays even more events with the Invictus Games, Rugby Sevens, the Alcoholics Anonymous Conference with 60,000+ attendees as well as many others to name a few. Coupled with all that, the Chinese tourist is finally back!
The revenue per available room (RevPAR) is predicted to rise by 7.1% this year in Calgary and is expected to reach $123. This growth is due to the economic rise of the city and the launch of the new BMO Centre, which has attracted conventions and events more than ever before. However, there is a but – Calgary needs more rooms, and it needed them yesterday! With a massive Rotarian conference of 30,000 people coming this Spring, the city is feeling the pressure to perform. This is good news for investors and developers who want to take advantage of the surge for future events.
Banff and Victoria: The Luxury Leaders
If you thought Calgary was hot, wait until you hear about Banff! It has been observed that the average daily rates have risen to $410 and the RevPAR has grown by 7.8% to $266. It has become such a hot spot that it can be difficult to secure a room at peak times. Victoria, the alternative of Banff in B.C. is not that far behind. Rates are up 7.5 percent to $262 per night, and RevPAR is up 13.4 percent to $191, which clearly shows that luxury travel is thriving in Western Canada.
Selling Smarter in 2025
So, now that we have discussed the opportunities, here are some suggestions on how you can go about taking advantage of them and enhancing your hotel’s sales. Here are some tips that have been proven to be effective:
- 1. Embrace Dynamic Pricing:
This is where you set your prices according to the real-time market conditions. This enables you to get the most revenue from the room when the demand is high and fill the rooms when the demand is low.
- 2. Diversify Your Offerings:
Do not just offer rooms – offer experiences! You can also add unique F&B options, local tours, or wellness packages to enhance your guest spending.
- 3. Personalization is Key:
It is essential to use the guest data that you collect to personalize your communications with them. A personalized experience can result in higher satisfaction, more repeat business, and, consequently, more revenue.
- 4. Expand Your Distribution Channels:
You shouldn’t put all your eggs in one basket. To increase your audience, you should use OTAs strategically for your low season and direct bookings for your high season along with your hotel’s global distribution systems.
- 5. Focus on F&B:
If done correctly, your food and beverage options can become a major source of revenue for your property. Some suggestions are to host unique dining events (local chefs) or to offer gourmet room service.
Note that the success in today’s market relies on the strategy of flexibility. Stay on top of these trends, listen to your guests, and don’t be afraid to give some strategies a go. The Western Canadian hotel industry is on the rise and with the right strategy so you can make sure your property gets its share of the market. So, what are you waiting for? It’s time to pull up your socks and make 2025 the best year ever for your hotel!