A huge slump in business travel which is forcing hotel chains to offer deep
discounts to keep their rooms occupied may provide the best deals in years
for consumers planning family vacations.
Because of the downturn in the economy in general businesses are scheduling
less trips these days and fewer employees are taking business trips.
Business travel is at it lowest rate in 10 years, according to one report.
This situation has caused many Hotel chains to turn to the online discount
travel agencies to try to fill their empty rooms.
The theory is a room rented at a discount rate, any rate, is better than an
empty room -- and this spells deep discounts for consumers planning trips
and who are willing to book their reservations online.
"You can find the same hotel room $100 cheaper on a Web site than by
calling an 800 number" for a reservation center, Jeff Weinstein,
editor-in-chief of Hotels Magazine, told
Reuters.
"Online hotel sales have been soaring as discount sites attract millions of
buyers with their special ... rates," said a recent industry analysis from
consulting firm PhocusWright Inc. "Within three years online hotel bookings
will increase from 9 percent of total gross bookings to one in five."
These big online discounts have "boosted profits at Expedia and Hotels.com,
which represent roughly 60 percent of online agency hotel sales," the
report said. "Travelocity will try to emulate their success via its new
rate program launched in late 2002. Orbitz will likely follow this year."
"There are low price guarantees," Lorraine Sileo, a spokeswoman for PhocusWright,
told Reuters. "Some will say 'go to Expedia (for a price quote) and we'll
give you 10 percent less,' and they'll also offer other specials -- three
nights for the price of two and so on. It's always good to shop around,"
she advises.