Hotel rates remain down

Hospitality and travel research companies predict that 2010 hotel room rates will remain favorable to buyers. Carlson Wagonlit Travel North America (CWT) expects about a $10 drop in domestic daily room rates, including promotional rates and upgrades, compared with 2009. As meetings spending has decreased, CWT sees low prices, elongated cancellation windows and higher attrition rate clauses continuing into 2010 for buyers. PKF Research doesn’t expect national average room rates returning to 2008 levels until 2012 or 2013. According to Smith Travel Research, the average U.S. daily hotel rate dropped about 10 percent from a year earlier and is down 8.5 percent since Jan. 1. U.S. daily room rates peaked at $106.69 in 2008. Luxury properties experienced steeper declines, with rates falling 19 to 29 percent. Experts predict it will take years for hotels to return to pre-recession levels.