
When the economy goes into the tank, people stay at home. But for those still willing to see what’s out there, there are stupendous deals to be had. Hotels, resorts and cruise lines are offering rock bottom rates and doing everything they can to fill rooms, including teaming up with airlines to offer jaw dropping package deals. And savvy consumers can reap the benefits. A case in point: This reporter recently booked a Waldorf Astoria suite in the Palm Springs area through Priceline.com for about $130 after taxes in the middle of a holiday weekend, no less. Although we didn’t know where we’d end up, the 900 square foot “Spa Villa” where stayed is listed for $679 a night next weekend. The Walt Disney Co. is offering a seven night stay at its Walt Disney World resorts, including seven days of park tickets, for the price of four nights and four days of tickets. And it’s throwing in a $200 gift card that can be spent on food and merchandise. According to one travel agency Web site’s spokeswoman, travel deals haven’t been better since the aftermath of the Sept. 11 terrorist attacks. Here are some questions and answers about what kind of deals are out there and how to snag them.
Q: Why are Travel companies offering such cut rates now?
A: Around the world, occupancy and room rates are down as business travel has fallen and vacationers are staying at home because of the recession. According to Smith Travel Research, occupancy in North American hotels was down 10.3 percent in November from a year ago, to 52.3 percent. The average daily rate was down 3.3 percent, to $101.84, while the revenue per available room was down 13.3 percent, to $53.28.
In other words, hotels are about half full these days. And if you are a paying customer, management is willing to cut you a deal.
Q: Why are a hotel’s official, posted rates often so much higher than what you can find through a travel agent or travel Web site?
A: Hotels are averse to cutting their posted rates, because some people are willing to pay that price and those people help the bottom line. After the Sept. 11 terrorist attacks, hotels slashed rates and suffered for years afterward, according to Smith Travel Research spokesman Jeff Higley. Now they are more likely to throw in freebies to keep customers happy. ”Rather than lowering their rates, they try to put packages together to add value to the rate,” Higley says. So, if you can’t score a rate cut, Higley says, look for free valet parking, free Internet access or free breakfast hotels may be willing to throw these freebies in.
Q: Back to the bottom line: How do I snag a cheap rate?
A: Some Web sites are offering extreme discounts on hotel rooms. Priceline.com is now offering hotel rooms in New York at three star establishments for $99 and in Washington, D.C., for $59. The catch is that users have to submit their price and credit card information before knowing the exact hotel they will stay at. ”Occupancies are under pressure and prices are generally coming down,” Priceline.com Inc. Chief Executive Jeffrey Boyd says.