No immediate relief for hotel room rates
When will soft US hotel room rates go up? Generally, not till 2005, says a survey of the US market by the Hospitality Research Group (HRG) of PKF Consulting. The survey found full-service hotels have reacted with more volatility to economic downturns than limited-service facilities. The study also said the market would continue to be so soft this year and next that rates would not rise above inflation increases until 2005. Once rates start going up, deferred maintenance and special amenities that have attracted higher prices for full-service hotels will return, the study predicted. The study also predicted that group and business travelers, the market segment which declined the most in recent years, should bounce back faster than the leisure segment.
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