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Las Vegas Area Among Top Hotel Markets to Drop RatesNovember 22, 2010 By: Melanie Gretchen
Clients looking toward holiday travel might want to consider Hotwire's Hotel Rate Report for November 2010, detailing the top five cities in North America where hotel rates have decreased the most since last year and the top five that have experienced the biggest increase. Among those where hotel prices have decreased, look outside Las Vegas in Reno.
Top Five Price Decreases
At the top of the five hotels to have experienced the most price reduction is Syracuse, NY, with 11 percent. Following the opening of new properties, other hotels have decreased their rates to compete. Behind Syracuse was Colorado Springs, CO, with a nine percent decrease in rates.
At number three, in Reno, a lack of special events and group tourism account for the decrease in hotel rates by seven percent. In addition, bookings in November through the end of the holiday season have been light. Like Syracuse, new hotels have created a surplus in rooms and lower rates. Moreover, rates during the week have been especially low in Reno's downtown area.
Making the list for the second month in a row, Richmond, VA, and Omaha, NE, at four and five respectively, have experienced a six and four percent drop, respectively. Both reported a decline in group and business travel toward this trend.
Top Five Price Increases
Coastal markets made the top five in price increases. First was Charleston, SC, marking a 32% since 2009. The STR Global Report tracked a demand in increase and a rise in occupancy from 58.8 to 65.6 percent year-over-year. As a result, hotels, where there are a limited number of rooms, have raised their prices, with a concentration in the downtown historic district.
Second was Atlantic City, NJ, with a 24 percent increase, propelled by the renewed demand of four-star hotels. At number four, Toronto's hotel rates have risen also by 24 percent. Strong convention and events business have occurred this month and last here, as well as a visit from the Dalai Lama.
Previous listers Niagara Falls in Ontario and Miami made the grade again at number three and five respectively. Higher convention business and the number of events in town drove Miami's travel economy at 16 percent, and Niagara Falls' market increased by 24 percent with the rise in transient and small group business, leading to fuller hotels.
Clem Bason, President of the Hotwire Group said, "Overall, 2010 has been a year of recovery for the hotel industry, but no matter the economic situation, hotels will always have unsold inventory to sell."
Hotwire Hotel Rate Report comes out the second week of each month. Toward the results, Hotwire reviews stay dates for select regions in the current month and compares those numbers against prices in the same month of the previous year. Every night, the site found that more than 1.8 million hotel rooms go unsold across North America.