July,15, 2008: Declining hotel room rates may be good news for travelers but bad news for owners and the industry, say tourism observers.
Take the example of Las Vegas.
A new survey by LasVegasAdvisor.com shows that rates are lower than they’ve been in five years.
The Web site found that half of the 84 casino hotels surveyed offered July rates of $49 or less per night; 30 casinos had rates of less than $40 a night. There’s even a bargain rate of $19.99 offered by Palace Station.
Luxury hotels are slashing their prices too, according to the survey.
Among the low nightly rates found at the time: Monte Carlo $60, Hard Rock for $69, and Treasure Island for $76.
“These are exciting times in Vegas if you can get here,” Anthony Curtis, publisher of LasVegasAdvisor.com, told USA Today. He added:
“After five years of escalating prices, suddenly we’re seeing deals again.”
Many observers blame cutbacks in airline travel for a projected future drop in hotel rates.
Growth has stalled for industry giant Marriott International Inc., which in recently released earnings reports lowered its forecast for growth.
JPMorgan analyst Joseph Greff said he expects Marriott to report a slowdown in leisure transient and corporate demand.
The AP said in an Overview: “Hotel operators including Marriott been under pressure as the housing slump, economic uncertainty and soaring fuel and food prices have cut into consumers´ travel spending.”