Hotel rates climb despite soft demand
October 30, 2008 | Hospitality Industry
Despite dropping occupancy and sliding revenue, the latest numbers from Smith Travel Research show the average daily rate for hotels in North America was up 3% last month. But that doesn’t mean travelers aren’t getting better deals.
With hotel analysts constantly reminding hotel owners how long it took for their rate structures to recover from post-9/11 fire sales, hoteliers, for now at least, seem to be focused on promotions that reduce a traveler’s bottom line without reducing the base rate that hotels use to negotiate future group, business and tour operator prices.
So far, it seems to be working.
In the third quarter, however, RevPAR dropped 1.1%, to $70.40, moving “into negative territory for the first time since Q2 1993, ending a span of five years with positive quarterly RevPAR increases,” said Bobby Bowers, STR’s senior vice president of operations.
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