Hotel availability to continue to tighten

April 12, 2005 |

At a time when many buyers already are having trouble finding the hotel room coverage in key cities midweek, the availability outlook is expected to tighten further and into 2006.

At a time when many buyers already are having trouble finding the hotel room coverage in key cities midweek, the availability outlook is expected to tighten further through the remainder of 2005 and into 2006, according to a forecast released today by PricewaterhouseCoopers.

Bjorn Hanson, head of PwC’s hospitality and leisure practice, attributed the situation to increasing occupancy rates, which have allowed hotels to raise daily rates significantly.

“With occupancy increasing at U.S. hotels, availability will be even more limited,” he said, noting that in 2005 hotels anticipate their largest rate increases in four years. These rates will reflect the increases they will seek this fall from buyers in negotiations for 2006 rates.

“Hotels believe the balance of power for negotiations has reversed from what it was in 2001 to 2003,” Hanson said. Meanwhile, hotels continue to seek additional revenue from hotel services, fees which buyers were able to eliminate through negotiations during the past few years. “Costs for hotel services will rise at an even faster pace than room rates,” Hanson said. As examples, he cited increased early arrival and departure charges, higher cancellation fees and automatic gratuities for housekeepers and bellmen.

PwC forecasted that average daily rate in 2005 would jump 4.3 percent, following a 3.9 percent increase in 2004. It expects rates to rise another 4.6 percent in 2006.

Related Articles

After Mumbai, debating security at luxury hotels
01 Dec, 2008 | Hospitality Industry

Strategies for booking hotels on a budget
01 Dec, 2008 | Hospitality Industry

Consumers switch, shout and sulk over hotel entertainment
01 Dec, 2008 | Hospitality Industry

Back-to-basics marketing tips for today’s challenging economic conditions
27 Nov, 2008 | Hospitality Industry

How to deliver a successful presentation
27 Nov, 2008 | Hospitality Industry

Travel industry loyalty programs need revamp
26 Nov, 2008 | Hospitality Industry

Hotels: managing in a downturn
26 Nov, 2008 | Hospitality Industry

Stuck in our business hotels
26 Nov, 2008 | Hospitality Industry

Sabre says most hotels passing rate-integrity test
25 Nov, 2008 | Hospitality Industry

Luxury business-traveler segment going away with great speed
19 Nov, 2008 | Hospitality Industry

Most Popular Articles

Travel: Weakening demand becomes falling demand
19 Nov, 2008 | Online Travel

The disturbing inaccuracy behind Google Analytics
18 Nov, 2008 | Internet Marketing

Expedia to restructure
18 Nov, 2008 | Online Travel

Luxury business-traveler segment going away with great speed
19 Nov, 2008 | Hospitality Industry

TripAdvisor wants your hotel website
20 Nov, 2008 | Hospitality Industry

Back-to-basics marketing tips for today’s challenging economic conditions
27 Nov, 2008 | Hospitality Industry

Hotels struggle, but guests less so
18 Nov, 2008 | Hospitality Industry

Expedia and Carlson Hotels launch flexible pricing pilot
25 Nov, 2008 | Online Travel

Marketers need to adapt to new economic conditions
19 Nov, 2008 | Internet Marketing

Vacation rentals: Gunning for the leisure hotel shopper
18 Nov, 2008 | Online Travel

E-Mail Newsletter


Visit our sponsors: