Hotel rates to rise 6.5% for U.S. Travelers

U.S. travelers can expect room rates to rise 6.5 percent next year, despite an expected slowdown in the economy, the travel industry's main trade group forecast on Friday.

"Hotels will continue to raise rates aggressively," said Dr. Suzanne Cook, vice president for research at the Travel Industry Association of America. Although some new hotels are being built, demand still exceeds supply in some markets.

Cook spoke at the Boca Raton Resort & Club, where the travel group held an annual outlook conference for marketing executives. Cook predicted that growth in the travel industry will slow as declining home prices affect consumer spending and continued malaise in corporate travel brings fewer road warriors to hotels, resorts and airports.

The average daily room rate at hotels nationwide, which was $90.56 last year, has increased to $96.73 so far in 2006, and is expected to reach $103 next year.

Those national rates are lower than in South Florida, where strong pricing power in the winter skews annual averages. Last year, the average daily room rates were $148.86 in Palm Beach County and $100.56 in Broward County.

Growth in travel will track the economy in general, which is expected to grow by 2.2 percent next year after accounting for inflation, Cook said.

South Florida's economy relies on tourist spending. Broward and Palm Beach counties have about 850 hotels and visitors spent an estimated $10 billion here last year.

Nationwide, Cook said tourism expenditures are expected to grow 7.5 percent this year to $702.5 billion before moderating next year to 5.3 percent, reaching $739.6 billion. Those figures are not adjusted to account for inflation, Cook said. "Over the next few years we expect growth in spending to slow, but still to have positive growth in spending," Cook said.

Business travel is part of the slowdown, Cook said. With Fortune 500 leaders forecasting weaker growth, they are keeping tight rein on travel budgets, she said. Audio and video conferencing continue to grow as alternatives to business meetings. Cook said she expects no growth in the number of business trips this year and only 1 to 2 percent growth next year.

The outlook for leisure travel is a bit sunnier, with growth of 2 percent forecast this year and 1 to 2 percent next year, Cook said.

International travel to the United States peaked in 2000 at 51 million visitors, and then sagged after the Sept. 11, 2001, attacks. Cook said that foreign visitors this year are finally expected to exceed the 2000 level, coming in at 51.4 million.

But she said international travel to the United States is weakening, especially from overseas markets in Europe. Cook attributed the weakness in part to security fears and to the lack of a coordinated national advertising campaign aimed at foreign travelers.

Still, there remains some mystery as to why travel from countries such as the United Kingdom and Japan is slowing. "We're not sure quite what's happening," she said.

[Source from chicagotribune.com]

Novotel Suvarnabhumi SPA - Bangkok Airport Hotel

Just opened recently, the Novotel Suvarnabhumi is one of the most interesting new hotels in Thailand. You will also find an excellent SPA inside that makes this new airport hotel an establishment with all the bells and whistles.

"Relax, Restore, Revitalize" sums up pretty well, what the Novotel Suvarnabhumi SPA is all about. And as an introductory offer, the SPA at the Novotel Suvarnabhumi offers a 25% discount on all massage treatments from 10:00 until 15:00 each day.