Hotel Rates Expected to Fall through 2010
Monday, October 12th, 2009
The American Express Business Travel 2010 organization has reported that hotel rates are expected to decline by as much as 3 to 6 percent through 2010 in the United States. The report is based on sources from Smith Travel Research Global Hotel Reviews, and the NBTA-HIS Global Insights business travel market sizing research entities, and experts trace the reduction in prices to a steady increase in demand for business travel as the state of the economy improves.
Many analysts and economists are indicating that the economy is improving already, and that the travel industry may soon see some better returns. However, there are not any statistics or formal statements by researchers stating that this will be the case. For now, experts are relying on market forecasting reports and predictions to determine which way the travel industry will be going in the oncoming months and years.
The travel and tourism industry experienced many setbacks through 2009, with hotel occupancy rates reaching all time lows, and a significant reduction in demand for corporate travel and business class bookings. Many companies simply cut traveling out of their budgets for the year in order to save on costs and invest their resources in other outlets to help their bottom line.
Since corporate travel accounts for a significant amount of revenue for airlines and hotels, any reduction in demand took its toll on revenues and made it difficult for hoteliers and travel companies to survive the challenging times. The American Express Business Travel report expects that airlines will also have a better chance of increasing revenue after the long stretch of more consumers staying home and avoiding air travel as they saved on costs. Still, hotels will be offering reduced rates in hopes of attracting more customers and making airline and hotel packages that much more attractive for the budget-conscious consumer.
