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Domestic, International Hotel Rates Take First Quarter Dip in 2009April 16, 2009 By: Travel Agent Central Contributor
Ovation Travel Group, a corporate travel management company, has identified a shift downwards in hotel rates for the first quarter of 2009 at three-, four-, and five- star hotel properties both domestic and international. Per a survey conducted by Ovation of over 92,000 room nights in 30 global destination cities, on average, three-, four-, and five- star properties have lowered their rates by 17.4 percent in the first quarter of 2009 compared to the first quarter of 2008.
Ovation identified the following trends:
* Of the 30 domestic and international destinations surveyed, 26 showed a year-over-year trend of reduced rates at three-, four-, and five-star properties.
* The cities which showed a year-over-year rate increase for the first quarter were Abu Dhabi (33.7 percent), Dublin (6.2 percent), Milan (5.1 percent), and Tokyo (3.2 percent).
* Delhi, Dubai, Hong Kong, London, Mexico City, Mumbai, New York, Paris, Singapore and Toronto showed the greatest rate decreases, all over 20 percent.
* Of the 12 domestic cities surveyed, all showed a year-over-year rate decrease at three-, four-, and five-star properties.
* In spite of travel-boosting events in Washington, D.C. during the first quarter of 2009 (such as the change in administration and the Presidential Inauguration) the prominent destination showed a year-over-year average rate decrease of -2.7 percent as compared to the first quarter in 2008.
The key global destination cities surveyed, and corresponding YOY variance identified in hotel rates, are as follows: