As the US hospitality industry struggles through one of the worst financial periods in more than 20 years, hotel managers are moving beyond the usual discounts and offering creative promotions to attract business. Some deals offer big savings for guests, while others are simply meant to generate publicity.
If this all sounds desperate, it’s for good reason. Occupancy rates nationwide have been hovering at below 60 percent this summer, the lowest levels since the terrorist attacks of Sept. 11, 2001. Hotel revenues per available rooms have dropped by nearly 20 percent this summer, to less than $60, the steepest dive in 22 years, according to industry reports. Even worse, hotel analysts don’t expect the industry to rebound until 2011 or later.
Analysts blame the slump on the recession, an increase in hotel openings in the past two years, and a dramatic drop in business travel as corporations cut budgets to ride out the economic maelstrom.
Promotions and package deals have long been a staple of the hotel industry, particularly during slow periods. But industry experts say more hotels are now relying on special packages and promotions to survive the recession.
Take the Wilshire Grand Los Angeles, where summer room rates were tied to the high temperature in downtown Los Angeles. Under the “Beat the Heat’’ deal, if the mercury peaked at 87 degrees, guests booking a room that normally cost $119 paid $87 instead.
But the deals are even better in places like Las Vegas, Dallas, and New Orleans, where the tourism industry has been hit harder by the recession and hotel managers are desperate to fill rooms.
At the Las Vegas Hilton, for example, you can stay two nights under the “Fly High and Free’’ deal and get a $300 voucher for a round-trip flight on any airline, a $100 dinning coupon, two free breakfasts, and two free cocktails. When the extras are subtracted, the room ends up costing about $49 a night.
