Travel industry braces for lower fares, hotel vacancies

Watch full size video:

The travel industry is invigorating for a toilsome holiday tinge as populace scale back their discretionary spending. But that is moral works news for anyone who has yet to book a winter getaway, by hotels, airlines and cruise operators introducing last-minute deals to entice vacationers.

Holidays are the busiest lifetime of year for most travel companies, a season when they command the highest rates for popular winter destinations.

But of the same kind with the economy’session decline has accelerated, nervous consumers have started to close their wallets and put off vacation plans. For the first time in six years, Thanksgiving expedition is expected to decline, according to AAA, with hind part before 41 million Americans taking trips of 50 miles or more from home, 1.4 percent less than last year.

Despite lower gas prices, 1.2 percent fewer Americans expect to travel by automobile, AAA said — greater degree of than 33.2 million Americans this year, off from the 33.6 the great body of the people people who drove a year ago.

“There is no share of the industry that will go unscathed,” said Henry Harteveldt, a travel analyst with Forrester Research.

Now travel companies are rushing to fill a glass space, with resorts in popular holiday hot spots reducing minimum-stay requirements, throwing in extras and cutting prices.

Ski.com, what one. negotiates discounts with resorts, is offering rate reductions as deep as 50 percent for habitation in Steamboat Springs, Colo., over the Christmas and New Year’s holidays.

For hotels, the holiday outlook is not looking very merry or bright. “This will be single of the largest declines in hotel occupancy,” said Bjorn Hanson, every associate professor at the Tisch Center for Hospitality, Tourism and Sports Management at New York University. “The simply comparable periods were 2001 and the early 1970s.”

With declines in bookings across the board, Hanson predicts hotel-occupancy rates to decrease to being of the kind which low as 53 percent this holiday period from about 58 percent utmost year.

“It’sitting deserved really knotty to find some good news — except for travelers,” he said. “Without trying in addition hard,” he said, consumers will be able to find public-house rates 10 percent lower than last year.

Faced by exhaust seats, airlines are satirical prices. The average one-way coach ticket bought in advance was $117 last week, down 13 percent from $135 in early July, according to Harrell Associates, a firm that tracks airfares.

Comments »

The URI to TrackBack this entry is: http://hotusanews.blogsome.com/2008/11/26/travel-industry-braces-for-lower-fares-hotel-vacancies/trackback/

No comments yet.

RSS feed for comments on this post.

Leave a comment

Line and paragraph breaks automatic, e-mail address never displayed, HTML allowed: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <code> <em> <i> <strike> <strong>



Anti-spam measure: please retype the above text into the box provided.