Holding the Line on Rising Hotel Rates

It’s official: The Great Recession is over for the hotel industry. Travel industry analysts forecast that U.S. hotels will book more rooms than ever this year, with hotel occupancy increasing for the fifth year in a row. As the demand for lodging increases, the supply of available hotel rooms is not keeping up. Hotel construction projects, put on hold during the recession, are moving forward, but the new inventory isn’t expected to make a noticeable dent in supply for at least another year or two.

Not surprisingly, such conditions are encouraging hoteliers to raise their room rates. Various forecasters have predicted 2014 hotel room rate increases of around 4 to 5%. Recent statistics validate this prediction: Smith Travel Research reports that the average daily rate at U.S. hotels in June increased 4.3% year over year to $116.20.

No doubt, it’s a seller’s market for hoteliers — a situation that presents definite, though solvable, challenges for business travelers and corporate travel departments.

Getting the best rate in a tough market
The rebounding U.S. economy that’s giving a boost to the lodging industry is also spurring more business travel, as companies show their confidence in the recovery by increasing their travel budgets. But businesses must stay within those budgets, even as lodging providers continue to raise their rates.

More than ever, you need the help of an experienced partner with industry knowledge and connections to get the best travel rates. For 12 years, Creative Lodging Solutions has been providing customized solutions that help our clients hold down their business travel costs. Through our extensive network of lodging provider partners, CLS is ready and able to negotiate the hotel and corporate apartment rates that will help your company meet its travel goals and stay within budget — even in these cost-challenged times.