Revenues are down, or flat at best, and you're now looking for ways to cut expenses. For some reason, this is where the minds of hoteliers turn from driving profit to basic survival. Having been there, I understand how difficult it is to operate a hotel in times like this. Making those decisions, what to cut, what to keep, is one of the hardest parts of your job.
It's time to prioritize operational and marketing functions; you don't have to do everything, but you do have to do the right things. While prioritizing those functions, choose those which provide the best return-on-investment no matter what the cost. Shoot for the near-term and long-term results you will need to grow your business. Blindly cutting programs just because they may require a continuing investment is very short-sighted.
The best way to convince yourself to continue spending in a recession is by understanding that hotel marketing requires a sustained effort and results are cumulative and tend to compound. When the economy turns around (and it will), your hotel will be in a much better position.
The arguments for continuing to spend in a weak economy are tried and true and are based upon solid economic realities. Should your competition cut too much, while you decide to maintain your marketing spending, you'll have an excellent opportunity to gain market share. The Internet should produce at least 30%, or more, of your total business; yet we see too many hoteliers that are not totally engaged in this marketing tool.
Opportunities to pick-up new business will present themselves; travelers don't disappear, they simply look for more value-based alternatives. Travelers will grow conservative, but they don't vanish. Building business can be thought of in much the same way as building a retirement fund; slowly and cautiously.
Trips will be shorter, more compact with less ancillary spending.