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Hotel prices on the rise in 2010
If you didn't score your travel deal-of-the-year in 2008 or 2009, you'd better start planning for 2010. According to a report from American Express Business Travel, the economy is on the rebound and so are hotel room rates. American Express released third quarter data from its Business Travel Monitor last week and if the index is correct, leisure travelers should start saving. While luxury hotel rates continue to decrease, the index shows a continual increase in mid-price, economy and budget tier hotels.
"Continued drop in demand has impacted both international and domestic hotel bookings," said Christa Degnan Manning, director, eXpert insights, Global Advisory Services, American Express Business Travel. "However signs point to an increase in demand from the bottom up, where rates have notably increased up to seven percent in lower hotel tiers, driven by a positive up-tick in demand from travelers wanting to travel, yet doing so more cost-consciously."
All that aside, there's still plenty of room to score a hotel deal in the coming year.
Before you book:
- Always check the hotel promotions page to see what offers might fall during your stay. Don't turn down a discount for a free meal, spa or hotel credits. You never know when you're going to want room service and if for some reason your flight is delayed, a few hours at the spa won't be so terrible.
- Join a hotel loyalty program - Hotel loyalty programs are free and usually come with added perks like free in-room Internet access (which can save travelers up to $15 a day).
- Ask, and you'll likely receive - "Please" and "thank you" are two phrases that work very well in the hospitality industry. Ask politely for an upgrade when you check in. If there's not one available, ask to be moved to a corner room (they are generally bigger).
Filed under: North America, United States, Hotels and Accommodations
Reader Comments (Page 1 of 1)
Travelbabe Jan 3rd 2010 9:22PM
You are NUTS - hotels are going our of business daily with occupancy at ALL TIME LOW!!!
A word to the wise -
Raise the prices and there will be many more hotels out of business - one word for me and do as you please.
Dr. Ed Gunther Jan 3rd 2010 9:25PM
Are you kidding? Hotel rates jumped to rediculous levels in the past few years, then have fallen a bit recently. I thought it was a market correction, not temporary relief. Mediocre hotels had gone to $80 - $100 a night, and that's just too much for a Holiday Inn Express type hotel. Sure they have costs, but that's $3,000 a month for a room. Nicer hotels, like Hilton Garden Inn's seemed to creep up from the $99 a night range to absolutely rediculous levels, like $120 - $160 a night. People who absolutely didn't HAVE to travel largely avoided hotels whenever possible. I know a National Park hotel that went up about $10 a year, that's around 10%, when inflation was running about 3.5% .....rediculous. Another one, a Comfort Inn (ha) went to $115 a night, and it was $49 a night a decade ago. Consider, if a Toyota Camry went up at the same rate, it would be $60,000 today. Worse, the hotel is 10 years older and not as nice.
wayne Jan 4th 2010 12:28AM
It amazes me how business people think. We are in a recession. The hotel business needs travel stays either personal or business. Doesn't it make sense to drop your prices, to get your rooms filled to capacity and then negotiate bulk discounts on supplies and labor rates to maintain your profit position? The business gross profit picture of 35% doesn't have to apply across the board! Staying in business seems to be the thought of the day. Constant rasing of prices seems to reduce the number of customers when discounting seems to increase customers. Dah, Big Red Truck, !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Ed Jan 4th 2010 2:19AM
I haven't stayed at a hotel in nearly 10 years but I'm familiar with capacity and many of them operate at 20% or less and that can only lead to an increase to make up for the vacancies.. The budget one nighter type hotel will not see a drastic increase though. They get more frequent volume and are not as snazzy as many of the larger upper echelon hotels. It's a sign of travel cutbacks and a downsizing economic state..
chucky Jan 4th 2010 3:20AM
You need to see the whole picture. When high end hotels offer all types of amenities and lower their prices to meet the low end traveler they get a whole different crowd. Wouldn't you stay for the same price at ahotel that offers luxury linen, robes for use, chocolates and mini bars for a cheap rate. For that the luxury hotel gets all their items stolen and when they charge the people they deny it and get out of paying. How can the nice resorts replace these things if they are not making the money per night to do it? These people are not spending extra money at the hotel, they bring their own six pack. It costs the hotel to have the low end traveler steal items and trash their rooms.
Steph Jan 7th 2010 2:41PM
As the minimum wage continues to increase so will the cost of goods and services provided by a hotel. It is a trickle down effect. Electricity, gas, supplies, food goods will continue to cost the hotel more and more so therefore the cost of doing business increases for the hotel. The employees in the hospitality industry are among the least paid. A $60,000 camry? Let me introduce you to the Lexus. The car industry averages a pay rate of $30 - $35 dollars and this does not include the huge benefits package offered to each employee. This industry by the way is currently under the government bailout package but you don't see them lowering rates significantly. If you feel you are not getting the service you deserve from the hotel you are choosing stay at then please by all means choose to not travel or choose to stay somewhere else. We in the hospitality industry have to adapt and handle many diverse requests each and every day. We work when everyone else is partying or when everyone else is home with their families for the holidays. We are open 24/7 and 365 days a year. So, the next time you pick up the phone to book a room or when you go online to get the best deal remember that it takes many people to make a hotel run successfully. They are the Front Desk Clerks, Bellmen, Telephone Operators, Maintenance staff, housekeepers, laundry workers, dishwashers, servers, bartenders, cooks, chefs, bussers, security and many more you never see. Until you have worked in the industry and you know the overhead involved please don't judge and think we are just gouging the public or making loads of money. While lowering the room rate to increase occupancy may seem to be the answer from the outside looking in it is rarely the correct reaction. Room rates are based on a formula that takes into account what the cost is per occupied room. Hotels have a minimum they can charge for a room and still keep the doors open. So back to the increased cost of supplies... this increases the cost per occupied room and therefore prevents us being able to lower rates. So instead of hitting our industry why not look to the oil companies which has helped to raise all costs in this nation.