The End of Sweetheart Deals
A return to business travel is giving the industry a boost this summer and leading hotels to raise rates, New York Times reported.
“The sweetheart deals of 2009 are gone. Hotels are now more aggressive in revenue management, and are closing out lower price points as quickly as they can,” Henry Harteveldt, a travel analyst for Forrester Research, told the Times.
The number of hotel stays booked by corporate clients jumped 19 percent in June, and double-digit increases are expected through the end of the summer, Christa Degnan Manning, director of research for American Express Business travel told the Times.
So far, average occupancy rates are at 55.8 percent, down from a peak high of 63.1 percent in 2007. But analysts tell the Times the number or rooms booked for business and group travel could rise 6 to 7 percent compared to last year.
Meanwhile, rates in the fastest recovering markets, such as Boston, Washington DC and Philadelphia could grow 1 to 3 percent this summer. In New York, last minute rates are expected to be 10 to 15 percent higher.