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Hotel rates coming off rock bottom bargains
Hotel business is clearly up and with increased hotel-motel business, travelers might be waving bye-bye to rock bottom prices.
More people are traveling and staying in hotels so travelers should wave rock-bottom hotel prices goodbye.
USA Today says:
•Marriott, an industry bellwether, said this week that its rates in the second quarter rose for the first time in two years.
•Travelocity says rates of rooms in the nation’s 20 largest markets booked on its travel site for fall — from Sept. 7 to Nov. 19 — are 3.5 percdent higher than a year ago.
•Smith Travel Research, which tracks the hotel industry, found average rates in the top 25 U.S. markets up 3.5 percent in August.
Marriott is forecasting global RevPar to increase 6-8 percent in both the fourth-quarter and full year 2011.
The company expects 2011 to be even better than 2010 as demand and pricing continue to strengthen. It also expects to open 25,000 to 30,000 rooms worldwide in 2011.
Marriott revenues totaled over $2.6 billion in the 2010 third quarter compared to approximately J.W. Marriott, Jr., chairman and chief executive officer of Marriott International, said, “We are having an outstanding year.
Corporate and leisure demand continues to strengthen, and we are leading the U.S. industry in pushing retail price increases,” said J. W. Marriott Jr., chairman and CEO of Marriott international.
For the Marriott Hotels and Resorts brand in North America, nearly 90 percent of hotels raised corporate retail rates in the quarter and, overall, such retail rates rose 9 percent, he added.
Last year was not a good one for the industry but operators have been optimistic that this year would bring better results, though room rates were expected to lag. But that is not happening.
"Many seem to wonder if the economic recovery has any strength and if there is a risk of a double dip," says Arne Sorenson, Marriott’s president. "There’s nothing in our business that indicates this. Business and leisure travel are strong."
An increase in business and vacation travelers means hotel discounts will be harder to find.
"If they’re putting up positive revenue growth, then, yes, fewer deals will be available," said Rachael Rothman, an analyst at Susquehanna Financial Group.
By David Wilkening
David
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