HOTELMARKETING.COM

The “new normal”, you travel differently now

March 11, 2010 | Online Travel

The greatest concern for hotels, airlines, travel agencies and entertainment companies is that the financial crisis has led to a permanent reduction in spending on business travel, that corporations will tell their road warriors they always have to fly coach and shop online for cheaper hotel rates.

Travel management agencies and consultants said companies are likely to institute permanent changes in the way employees travel, effectively creating a “new normal” for business travel.

Some companies may prohibit premium-class travel altogether or use video conferencing to replace some trips, according to a business travel outlook provided by Carlson Wagonlit Travel.

he central issue now for hotel operators is room rates. Hotels cut prices for their U.S. rooms an average of nearly 9 percent in 2009 and are expected to cut them another 2.1 percent this year, according to PricewaterhouseCoopers LLC.

Will hotels be able to command the rates they once enjoyed in the heady days of 2007 or has there been a paradigm shift in the way people spend on travel?

Get the full story at Reuters

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