Nevada rates dropped the greatest of all the states with a decrease of 29 percent bringing average rates in the state down to $77 a night. Each state in the Western region did see a drop in prices by 10 percent or more.

With some of the lowest hotel rates and entertaining tourism activities, Las Vegas took the top spot as the most popular domestic destination for U.S. travelers in the first half of 2009. San Francisco, Los Angeles, San Diego and Seattle followed closely behind making the Western region of the U.S. a highly popular area for travelers.

"The Western region of the U.S. especially in Nevada, is offering travelers deals and packages like we've never seen before," said Steve Dumaine, senior director of merchandising at hotels.com