guardian.co.uk

As U.S. hotels try to lure a shrinking number of business and leisure travelers, the industry appears to have adopted a new motto -- "Better cheap than empty." But as hotels slash rates and offer sweet deals to fill empty rooms during the recession, they may regret their largess if customers get permanently spoiled by cheap lodging. "There will be a resetting of rates and rate expectations for the foreseeable future," said Bjorn Hanson, lodging industry expert at New York University. "Even less expensive hotels will have to compete on rate more than they have already."

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