Hotel Deals - Where are all the hotel deals?

The business press is full of doom and gloom about the hospitality industry (especially in the US) and how business is awfully bad. Yet I rarely see any good specials or low, promotional rates on hotels' online booking sites. Why is that?

PS. I don't mean assorted 2-for-1 deals, employee discount deals etc. Just straightforward rates on the hotels' online booking sites seem to show no change at all

The deals have never been better.

The deals have never been better.

I disagree.....the best deal was 2007's Orbitz save $200 on a 5 night International *hotel* stay with no minimum spend. They have the same deal sometimes, but its on *vacation packages*. This was hotel only, and thus led to some excellent discounts.

I went to South America for a month and paid around $20 total (residual taxes) for all of my 40+ nights. I went to Cambodia for a week and paid around $5.00.

Wow, Canuck, not very helpful. This year I was looking for rates in Maui and San Francisco (made phone calls to my favorite hotels), and New York, and there were no great deals. Maybe I need to be a better sleuth, but it didn't seem like they were desperate for business. Their prices didn't reflect it anyway. But I made reservations anyway! (I'm not totally cheap) So maybe they know what they're doing.

Wow, Canuck, not very helpful. This year I was looking for rates in Maui and San Francisco (made phone calls to my favorite hotels), and New York, and there were no great deals. Maybe I need to be a better sleuth, but it didn't seem like they were desperate for business. Their prices didn't reflect it anyway. But I made reservations anyway! (I'm not totally cheap) So maybe they know what they're doing.

As somewhat of a hotel expert (at least in terms of Wyndham Rewards brands), and I see nothing to indicate prices are dropping to all time lows. On the contrary, prices are quite high (I was paying $80 for a Super 8 in Colorado Springs - how does that work? I paid $35 a few years ago for a Best Western in the same area), and promotions are few and far between. The Expedia refer-a-friend is one promotion, but its more of a referral compensation than a hotel promotion. The LastMinuteTravel $10 deal is of limited use. We're just not seeing that much competition for our business these days.

I can't speak for upmost certainty, but I think this is what is happening. Hotels do not want to appear to be deflating prices--as then people will hold off as long as possible to book, and come to expect low prices. On the higher end, low prices can also be seen as cheapening the brand.

But they have to fill the rooms, or the revenue opportunity is gone forever. So to fill the rooms they use other marketing streams to fill the rooms that would not show up to the average purchaser of rooms, such as:

* use employee / friend & family programs
* opaque sales site -- Priceline and Hotwire in NA, for example. I would say that these two channels alone are the major way hotels are getting rid of excess inventory of rooms...
* multi-night promos, which may be a good deal...

So the rooms get filled, but they still can show (and charge) higher prices in the more traditional channels.

Personal examples: Getting the Sheraton CDG for 100USD a night from Hotwire when the *wood website is showing 230 Euro a night, or the long standing Fairmont F&F promo where I am getting nights 40% off regular website rates.

The deals are there, you just have to look!

-Brian

It's a mixed bag. I don't expect the Orbitz $200 thing to return anytime soon...I did very well under some of those past Orbitz deals. AORB40 ($40 off 3 nights) and the Expedia $50 gift card for 3 nights (U.S./Canada only) are the best I can think of now in that vein. I think being in high summer has something to do with that. The Expedia UK refer deal is absolutely tremendous and deserves a place in the all-time hall of fame. The $10 Lastminutetravel one is really quirky but could benefit those near the cities affected (staycations?) or who can go with little notice.

Usually I'd be bidding on Priceline a good bit, but the other deals are such that I haven't needed to lately. Would be curious as to what's going on with 2* places, as ExtendedStay America was a real anchor for that and now ESA is in bankruptcy. Getting an ESA at $25-32 or so used to be a Priceline staple.

Would agree with others that hotels are doing the deals through back channels so as not to drop the rates in general.

ABC News had a story tonight that was pegged to the Southwest fare sale (giving them free publicity) but that also mentioned that rental cars were up substantially this year vs. 2008.

The Expedia UK refer deal is absolutely tremendous and deserves a place in the all-time hall of fame.

Meh, I've had dozens of these codes come to me, but with only 12 credit or check cards at my disposal, I haven't been able to use them anyways. "Hall of Fame" should be reserved from promos that actually live up to their T&C's, not these fake promos Expedia likes to pitch.

Meh, I've had dozens of these codes come to me, but with only 12 credit or check cards at my disposal, I haven't been able to use them anyways. "Hall of Fame" should be reserved from promos that actually live up to their T&C's, not these fake promos Expedia likes to pitch.

Would agree that it's turned out to be dysfunctional and not as planned or advertised, but it's more of a clumsy, accidental dysfunctionality than a planned one. As such, it affords some opportunities as well as hassles. ;)

With deals in general, I've always maintained that the more access to a deal there is, the less generous it must necessarily be. The great fare sale of summer 1992 had to be the textbook case, with transcons dropping to $150 RT or less, the general media doing stories, and hourlong waits on the phone to get through to airlines (for the 99% not booking online at the time). Airlines vowed not to do that again.

So I think the really good stuff will have to have some "insider" element to it.

But they have to fill the rooms, or the revenue opportunity is gone forever. So to fill the rooms they use other marketing streams to fill the rooms that would not show up to the average purchaser of rooms, such as:

* use employee / friend & family programs
* opaque sales site -- Priceline and Hotwire in NA, for example. I would say that these two channels alone are the major way hotels are getting rid of excess inventory of rooms...
* multi-night promos, which may be a good deal...

So the rooms get filled, but they still can show (and charge) higher prices in the more traditional channels.


I agree completely - although published rates this year seem to be same or higher than last year, I've been getting way better Priceline availability, and at bigger discounts, too. So far this year, 50-60% off the lowest rate available on the hotel's website is not uncommon.

rental cars were up substantially this year vs. 2008.

I'm seeing the same here as with hotels, myself - PUBLISHED rates are way up, for sure, and if you don't have a discount/corporate code, or book on Priceline, you will be paying way more than a year ago. However, those discounts are very much still out there and available for the taking by those in the know.

A big part of the problem with car rents is tax structures in some places that can total 30% or so, plus maybe $4.50/day for some consolidated car-rent facility over and above that. So even the best car-rent deal can have 50-100% added because of taxes. And some of the taxes could be entirely non-travel-related and there only because local politicians are afraid to raise taxes on anyone who can vote against them.

One wonders what it'd take to convince such politicians that they're doing harm to the local tourism industry. They can always blame drops on something else. But when you get tax levels at 50-100% (making even booze and cigarettes seem cheap!), you start to sow the perception among middle and lower-middle income people that the activity is too expensive for their budgets (air travel used to be viewed this way, though not because of taxes).

Published hotel rates are not up, they are down http://www.btnonline.com/businesstravelnews/headlines/article_display.jsp?vnu_content_id=1003991747

I'm finding much better deals this year than in years past.

Earlier this year and late last year, many of us took advantage of the http://www.HotelClub.com $49/$50 and even $60 w/ $10 stackable promo. I stayed at the Mirage Hotel in Las Vegas for $9 per night.

In June, I booked and stayed at the brand new (Paradise Valley, Az) Intercontinental Montelucia on a priceline package from LAX for $296 for 3 nights including air and hotel (air alone was $99.50 in the package so the hotel was about $57 per night plus tax). I could have stayed at the Pointe Hilton Tapatio Cliffs with a air/hotel package for my same dates at the end of June from Hotwire w/ $75 off coupon for $199. Hotwire has been giving me special package rates (normally $30 off any package price just by signing on to my account) plus allowing stacking their coupons since I made a package purchase for a friend in April.

I just purchased the 4* Astor Crowne Plaza in New Orleans for Labor Day weekend for $46.07 per night plus tax w/ 5% off discount code SUMMER from http://www.OnHotels.com Even the Friends & Family rate, the lowest rate that I found otherwise, is $110.67. Priceline "Name Your Own Price" can't even beat this one for any 4* in the FQ. http://www.1800Hotels.com has the Intercontinental New Orleans for $43.50 including breakfast all summer if you can't get in on the http://www.LastMinuteTravel.com $10 rates. Today the 3* FQ Wyndham Chateau Bourbon came up for $57 on their 72-hour sale for my dates.

I just booked for my friend the 4* Hilton Post Oak in Houston on http://www.LastMintueTravel.com for $10 per night including tax for three nights this coming weekend.

3 weeks ago I booked for a friend over Labor Day weekend 6 nights at the Omni Cancun on Orbitz for $335 a package including air/hotel from LAX w/ the $200 off Entertainment/Orbitz coupon. The air alone was $265.

Allegiant Airlines has been offering flights as low as $9 from LAX. Today I saw LAX-Wichita in August is $29 each way.

So, I don't see how anyone can say there are not great deals. There are more deals than ever and more sites giving deals. You just gotta look. Start following the Twitter page of some of the travel booking companies and get special codes such as Priceline offered in April for $50 off 3 nights or how to get $50 off a package. Looking up http://www.OnHotels.com Twitter page and I found their 5% off discount code.

So, I don't see how anyone can say there are not great deals. There are more deals than ever and more sites giving deals. You just gotta look.

Probably true. I base my recent experience with high hotel prices on having to book last-minute rooms in Denver, Colorado Springs, and Dodge City KS. I used Expedia certs, but even so, the regular rates were in the 40-50 GBP range per night. Now, this is a two day advance purchase, but I surely don't remember ever paying more than $50 in any of those cities, ever in my life.

Maybe there are many deals on high end places, but I don't like paying for hotels, so I've never seeked out many ways to pay. The prices shown on Expedia.co.uk just seemed very high.

Yes, there are a great many high end deals, luxury hotels were hit the hardest with the drastic reduction in business travel. There's a great thread listing these deals in the luxury hotel forum.

I just came back from a stay at the Wit hotel in Chicago and it was incredible. The food, the services, the location, and the ROOF blew me away! It wouldn't be my ideal place for families but I loved my stay and was very happy that I was able to get Triple Hilton Points!

It's been my experience that if the deals come to me, they're not that great, But if I go looking for them, there are good ones to be found. For me, it's been the airfare that's not that great...

Probably true. I base my recent experience with high hotel prices on having to book last-minute rooms in Denver, Colorado Springs, and Dodge City KS. I used Expedia certs, but even so, the regular rates were in the 40-50 GBP range per night. Now, this is a two day advance purchase, but I surely don't remember ever paying more than $50 in any of those cities, ever in my life.

Maybe there are many deals on high end places, but I don't like paying for hotels, so I've never seeked out many ways to pay. The prices shown on Expedia.co.uk just seemed very high.

Here is a Reuters' article on the growing usage of lower-end hotel rooms as homeless shelters. I wonder if this is enough to reduce inventory, and keep prices up?

http://www.reuters.com/article/newsOne/idUSTRE5694XV20090710?sp=true

In Australia there's been a shift in where to look. There are no more bargains at wotif and lastminute now that they're all the same company. Even their "secret" hotels usually turn out to be duds a long way from town. Similarly Zuji, now part of Travelocity, is expensive even before the fees and surcharges. And expedia au mostly has the same high prices as the uk/us sites without the nice coupons. Except occasionally there's a reasonable expedia-au deal including breakfast for the Vibe hotels.

The best prices are now to be found back with the hotels' own sites, each chain in turn launching $99 prepaid-room sales. Last month we had the Accor-Pacific sale, great value for Novotels and Mercures at Au$99. This week was the IC Hotels Australia $99 sale=IC, Crowne Plaza, Holiday Inn etc.

I don't think anyone can make a blanket statement that hotel deals aren't out there. There are many factors at play here that dictate hotel pricing. I think CalItalian's post more than proves you have to be protactive, spend some time searching the Internet and look!

Speaking only for myself, I'm seeing reduced pricing in areas I typically book. And when you add the Expedia and/or Orbitz codes to the mix, it brings the rates down even lower. Because of this, I'm using Priceline and/or Hotwire less than I used to. For just a few dollars more, I'm not able to pick and choose the hotel I wish to stay at rather than going the opaque route.

As to RichardSF's comment about the luxury hotels, I noticed a few weeks ago the Mandarin Oriental San Francisco offering a $199 California resident rate for Fri/Sat nights. That's just one of many examples of deals within the luxury market.

Deals are definitely there this year (even this summer), but you can't sit back and wait for them to come to you in an email. You've got to hunt them down...

Well, as long as the deal is leaked out to SD or FW, it will soon be dead.

Wow. I am amazed that there are so many people in this thread stating there are few hotel deals around.

Are you kidding me?

There are loads of deals all over the place. Rates in San Francisco and Monterey are down to levels not seen since 2005 for most hotels.

Why are hotel rates not dropping dramatically as occupancy declines in 2009?

The reason: Over the past couple of years I periodically bring up Cornell University's Center for Hospitality Research articles recommending hoteliers hold rates up since multi-year studies from 9-11 to present show hotels across all market segments, budget to luxury, are more profitable with fewer occupants and higher rates.

Rates have steadily declined over the past year. NYC is down nearly 30% over 12 months ago. There are high rates on high demand nights, but keep in mind that high demand for a hotel these days is 70% occupancy for most locations.

The model most of the major chains are following this year is to have lucrative loyalty program offers and value-added benefits like free breakfast and free parking thrown into the lowest rates. While the room rates may not seem to have dropped dramatically in some locations, the value-added benefits provide a hotel room with extras at a cost much lower than it would have been last year.

Make sure you check the specific hotel website for Special Offers. This means if you are looking on Starwood Hotels for the San Jose Sheraton, actually go to the website for the San Jose Sheraton hotel and search special offer rates. This is where the lowest rates for a hotel will often be found and these rates frequently will not show up when searching the hotel chain's main siteand will not list on sites like Expedia, Kayak etc.

I have had no trouble getting double the value out of my hotel stays this year, meaning $200 in hotel benefits and future stay value for every $100 in hotel spending. In fact, I am getting more like $300 to $400 for every $100 in spending.

2009 is the best year for cheap hotel travel since 2002.

I have had no trouble getting double the value out of my hotel stays this year, meaning $200 in hotel benefits and future stay value for every $100 in hotel spending. In fact, I am getting more like $300 to $400 for every $100 in spending.

Care to cite some examples of current deals that you can see to substantiate this theorem?

2009 is the best year for cheap hotel travel since 2002.

Sure....but we think about "cheap" differently, I think.

I'm not talking about "deals" wherein you pay $100 for a $400 hotel room and are happy with the result. I can see how that would appeal to some. For me, I have a very limited income right now, so that is out of the question. If I want to travel, I need to do so for next to nothing. I don't have the $100 to spare like you might.

The Orbitz deal was a better fit for me - $200 off 5 nights with no min spend. So, I can go somewhere for 5 nights, almost free, so long as I find a participating hotel for around $40 per night. Same goes for the current Expedia codes.

I'm sure there are plenty of amazing, jaw-dropping offers. Le Meridian resorts going for $99 and such. But, if you don't have $99 to spare, this isn't a "deal", it's an pricey invoice. I have $0.99 to spare, that's about it :p

I think of it this way, for every $100 you put into ONE night at a "deal" hotel, I can get 20 nights at some hostels in Europe & South America. For me, I'd rather stay three weeks for the price of one of your nights. I'm young, and it makes sense to me.

I try to spend no more than $25/night on a hotel room - IF that. If I can find none, Priceline rejects me, Hotwire gives me no love, then a hostel (or sleeping in my rental car) is what I do (sadly). But, I get by....I went to Tahiti, and found a pension for a mere $20 per night. If I'm in Peru, I sleep in local hotels for $5-$10 per night. No complaining. Anything more than $25 I start griping.

If I had a well paying job, a ton of expendable income, or charged my hotels to a business account, I'm sure I'd see "cheap" in a different light.

So, I'll rephrase: Deep discounts, whereby almost no money leaves my pockets, are becoming extremely rare.

Sure....but we think about "cheap" differently, I think.

* * *

So, I'll rephrase: Deep discounts, whereby almost no money leaves my pockets, are becoming extremely rare.


So defined, I'm not surprised.

--mcz

So defined, I'm not surprised.

Agreed. Kind of an idiosyncratic stipulative definition, istm, and one that isn't in the range of what most folks think of when they think of a hotel "deal."

In the normal usage of the word, there are indeed lots and lots of deals right now. ^

Agreed. Kind of an idiosyncratic stipulative definition, istm, and one that isn't in the range of what most folks think of when they think of a hotel "deal."

In the normal usage of the word, there are indeed lots and lots of deals right now. ^

Don't get me wrong, I agree completely...there are plenty of deals out there, if you can afford them.

I'm surely not suggesting that a $100 rate for a normally $400 hotel room wouldn't qualify as a "deal". It's a great deal - if you have $100 to spare.

I just wish there were more "deals" for students and others in my socioeconomic range.

Care to cite some examples of current deals that you can see to substantiate this theorem?

I've cited examples with extensive analysis all year long in my blog.

I don't write about $10 hotel room mistake fares. I evaluate hotel loyalty program deals that allow a person who travels frequently to plan travel with promotions to get $4,000+ in hotel room value for $2,000 over the course of the year.

Hotels have market segments and I focus on the midscale to upper upscale hotel market.

Hostels, friend's and relatives' living room couches, or sleeping in a huge apple tree on someone's farm in Pennsylvania who picked me up hitchhiking is a travel lifestyle I had in my 20s when I was a college student. In my 30s I lived in a tent during summers in Maine when my home rental on the beach went from $600 per month to $2,000 per week. Nothing wrong with the lifestyle, but it doesn't suit me these days. I want more than just a bed for the night. I have to have a great bed that will not cause my spine to go out from a bad night's sleep.

Current deals: Hyatt has been giving away complimentary Diamond elite status with free upgrade certificates. This could have a $2,000 value for a free phone call.

Starwood offers a free night for two stays through the end of the month. Denver in May I stayed at the Sheraton Denver Tech for $130 for two separate nights. Two weeks later I had a free $500 room at the St. Regis San Francisco.

Wyndham Rewards is offering 10,000 airline miles for hotel stays in 3 different brands. In Monterey I could earn this bonus for an average of $50 per night. 3hotel nights for $150 and 10,000 airline miles is a bonus worth almost as much as the cost for the hotel rooms. And Monterey is an expensive tourist destination.

I just did a Marriott Hotels analysis showing Marriott in Rome for about $112 per night for summer travel with a 3rd night free offer.

There are deals all around in the upscale and luxury hotel segment.

Satori is correct re the mjor hotel chains except Hilton.

I think he forgot to mention Holiday Inn's Stay 2 nights get 1 free night almost anywhere, as well.

For chain loyalty people, this has been a good year so far.

Hyatt should be rolling out their FFN promo again come September.

Can't comment on the real low end -- but unlikely I would want to stay there.

Priceline must be seeing deals.

Also, even if some hotels prices have not dropped that much, I know of some hotels that have been rewarding mid-tier customers with upgrades. EX. Parker Meridien in NY upgrading Gold members on a $200 rate to a junior suite.

if you dont usually stay in luxury hotels, now is the time.

see crisis thread in lux hotels forum.

I've had great success this year with both luxury hotels & mid-price chains. With the Fairmont F&F deal, I've stayed at several great properties for very low rates. Have also taken advantage of the "stay 2-get 1 free" promos from both Priority Club & Starwood...earning nights at HIE & trading in for free nights at ICH's & earning at CP & trading in for St. Regis. Those are sweet deals! For the most part, have done very well by doing a little research & mostly going directly to hotel sites & booking, but also have used Priceline & Hotwire for great prices at 4&5* properties. If still in doubt, do as many others have suggested & take a look at the hotel deals being discussed over at the Luxury Hotels thread or those offered at Travelzoo & you will see how many properties are offering rate reductions & free nights.

There are deals all around in the upscale and luxury hotel segment.

I'm glad we've finally reached consensus on this thread :p

As has been said, there are good deals, but not necessarily through all the traditional channels.

I've found the greatest bargains to be at big city properties. Suburban/highway/small city/rural properties seem to be seeing solid rates.

It seems that NY, Chicago, DC--starting for September the rates are much higher than a few months ago. Does this make any sense?

It seems that NY, Chicago, DC--starting for September the rates are much higher than a few months ago. Does this make any sense?

Yes.

Hotels are trying to increase rates where possible. They'll float some rate increases to see if they will stick.

In that case it may be wise to wait to see if they drop.

There have been lots of hotel industry reports lately stating occupancy declines have leveled off in some locations. Hoteliers are being advised to try and begin raising rates.

Agree that it may be best to wait before booking. In San Francisco I watch the rates fluctuate throughout the week. Weekends tend to have the higher rates (not for weekend stays, but just high rates in general for any date and I assume this is to get leisure travelers booking higher rates). Around Tuesday the rates tend to drop to lower levels for a few days then creep back up again for the weekend reservations.

In general, rates in San Francisco tend to drop a week or two before the date of arrival unless there has been lots of booking activity.

There is definitely a move to raise rates for hotels. It is like the Tour de France where if the group acts together they can make up lots of time. If hotels act together to raise rates in a location, then we are all faced with higher rates. If they don't work together to raise rates and some keep cutting, then we benefit from lower rates.

Industry talk is encouraging hotels to raise rates and try to hold them higher even if that means lower occupancy. Research shows this is a more profitable strategy for the hotels. Not so good for us frequent guests.

I tend to book the 1 and 2 stars through priceline. I have noticed that the rates of these hotels have fallen and are still down. This is most likely due to downward pressure from the high class hotels who's rates on priceline tend to be more elastic.

So, I would argue that rates are down still.

I'll add my two cents

first off, I can't stand that analysis that "this deal could be worth up to $2000".. well technically yeah but realistically its not.. and second.. I would never think that I rec'd $2K worth of value even if I had unlimited funds..

third.. back to the deals.. I've found weekend deals ($55 courtyard near IAD) in business areas.. and weekday deals in weekend heavy tourist areas

for example that CY deal was in the 80 dollar range last year and I would never have pulled the trigger just to qualify for some promo completion.. but I did this year.. LAS I found a $59 midweek FI which was great. However all in all, I'm not seeing anything I would call great. One basis I used at a 30000 foot level is the gov't rate for reasonableness.. if I can't get things at or close to the gov't rate (of course there are exceptions both ways) then I don't think its reasonable. I'm finding more this year but still not much under the Gov rate which is where I start finding some excellent value.

Corporate rates.. ours held steady this year which is a first in a long time.. Some corps I've seen have pushed rates down as they must have more buying power than we do..

I don't stay at the so called luxury brands so I can't comment but I do know that if a $500 room drops to $400; thats still not a bargain to me.. neither is it at $300

promotions > there are some good ones this year.. although none would I consider the promo to end all promos.. which kind of surprises me.. the buy 2 get one's are nice and I do make use of them but its nothing that makes me really go to that one chain as there are only so many nights (free) that I can really use within a given redemption period.

With some FS hotels holding rates.. and cutting amenities it is driving me away from FS to limited service properties where prices are a little more reasonable and the service is what I'm accustomed to at that level hotel. All in all, I"m finding way more bang for the buck at ltd service hotels.

to me its all about value for the dollar.

Just to add some more bitterness to this thread (since there already appears to be some), I am finding that regular hotels are adding the $20-$25 per day Resort fee for use of their internet, pool, etc. Looking at the overall fee structure, even with prices of hotels going down the cost still seems to be the same or a little higher.

You really have to dig for the deals (but that's half the fun, no?).