The recession hit the travel industry particularly hard, producing some good deals at hotels. But in recent weeks, some of those deals have been disappearing, according to booking site Hotels.com.
The company's biannual Hotel Price Index (HPITM ) show an increase in average hotel room rates for the first time since the end of 2007. Despite the two percent increase, hotel room rates are still markedly lower than rates at the peak of the market.
According to the report, Las Vegas topped the list of top five most popular domestic destinations. New York, Orlando, Chicago and San Francisco were close behind. Popular cities for international travelers include New York, Las Vegas, San Francisco, Orlando and Los Angeles.
Were seeing travel bookings pick up around the world, said Victor Owens, vice president of marketing, North America for Hotels.com. Its stimulating to see not only the breadth of travel both domestic and international, but also the steady rise in hotel prices which is helping reinvigorate the industry. There are, of course, still deals to be had, especially in international destinations like Abu Dhabi, Dubai and Reykjavik which each saw a major drop in hotel prices during the first half of 2010.
Of course, higher prices may be good for the industry but not so much for consumers. Consumers often turn to one-stop booking sites for low prices but are increasingly disappointed. Sometimes they even over-pay.
William, a traveler from Keizer, Ore., said he booked two nights at a hotel through Orbitz and paid a total of $220.
"When I got to the hotel I found out they would have charged just $165.57 for the stay," he told ConsumerAffairs.com. "I called Orbitz and they said the hotel had no right to tell me their price."
Big events push rates up
The Hotels.com report found the largest room rate hikes in the second quarter were tied to major events for films, including the Cannes Film Festival and sporting events like the World Cup.
While rates were up overall in the second quarter, the report found that the rates for luxury rooms continued to dip. Several cities around the world saw average prices for top-end rooms drop over a tenth, making luxury in these cities a far more attractive proposition for travelers. Domestically, a five-star hotel dropped 13 percent in Orlando ($259-$225) and San Francisco ($323-$280).
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