Hotels losing fight to retain rates
When the recession hit hotels with its full force late last year, there was one thing on which owners and managers were determined: rates would not be lowered. They would take a hit on occupancy, they would offer extras as part of the price - but they would not drop their average daily rates. Eight months on, the growing evidence from hotel consultants and analysts is that hotels, under intense pressure form corporates, are losing the battle. TRI Hospitality Consulting reported a fall in rates in Amsterdam and Prague of more than 20% in May. PKF said room rates in London fell by 7.3% in May compared to the same month in 2008.