December 16th, 2009
Why Hotel Rates will rise in Orlando
Since I negotiate contracts with many Orlando hotels on a daily basis…I am asked frequently, what is going to happen to rates in 2010?
The simple answer is they will inch up providing we do not face any major economic downturns in the upcoming year.
At present, the storm clouds seem to be moving away and with that…hotels are seeing people in their lobbies as reservations are gradually picking up. Since the hotel management companies do not anticipate boom times in their business anytime in the foreseeable future, they are still excited to see any momentum at all.
Due to the severity of the recession, most hotels cut their nightly rates to the quick. They had too in an effort to stay with their competitive set. If you are the General Manager of a Holiday Inn and your average nightly rate was $75 and your competitor, with like brand down the street, was advertising rooms at $50 per night, you as a GM had to address your competition or risk falling further behind.
In a severe recession, all hoteliers have thrown away their manuals…survival has been their key. Now, with just a little movement in the system, they will be quick to raise rates when spikes of demand appear. For instance, in Orlando where we have a robust Easter spring break season. You can bet the low rates that you are seeing today when you search Orlando hotels will be 40 to 50% when you do the same search in March 2010. Hear this…any demand is going to be met with significantly higher rates than what is available today.
How do you combat the higher rate? Book early or change your travel plans to dates where the demand for accommodations in Orlando will be low…when most kids are in school…demand for Orlando Vacations will be down and rates will down as well.
To secure the best rates for your upcoming Disney Vacation at a first class resort, all you have to do is place a $50 refundable deposit to lock up the exceptional low nightly rates…to see our partner hotels, go to www.orlandovacationhotels.com