Economy's Downturn Means Better Hotel Deals

Why good for travelers who won't be traveling as much?  Because just like after Sept. 2001, it will take time for higher rates to take hold when the slowdown ends. Right now, many experts are predicting prices will be lower through 2008 and all of 2009, only recovering in 2010. For those who have to travel or won't be slowed by a sliding economy, this means bargains can be had - you just may have to dig to find them.

For instance, hotels will start to lower prices immediately because they have fully staffed up in the last few years and you can't let go of 30% of your staff just because growth has slowed in the last month. Therefore rates will fall in order to keep occupancy high. The same cannot be said for rates much further out, like summer of 2009 because hotels will hold out hope for a quick recovery plus the fact that few people reserve rooms a year in advance.

What this means however is bargains are available, but you will have to

probe to get the best deals. Our hotel might lower 'rack' (walk-in) rates by $5 or even $10 but in reality will sell you a room at $20-$25 under rack if you balk at the initial rate. But that is just one hotel in an area full of hotels. My calls to other hotels reveal no slowdown right now so rates will still be firm overall. The key is finding the right price, meaning the cheapest price a hotel will go. How you do that is more complicated than I can explain here - suffice to say I wrote a whole book about that alone. But it is possible to find great deals from now and probably throiugh next year - you just need to probe deeply if you aren't getting what you want or simply settle for a cheap hotel or motel is price is really the determining factor.

Comments

[Bruce]

Great information. I am really interested in the book. When? Where? How? I have you in RSS. I am counting on you to tell me where I can get this.