For almost two years I have written about the great hotel room rate bargains there are out there.
And they are still available but if you want to get those low rates you had better plan your travel for soon, because they are going to be on the rise.
Why? Because occupancy levels have risen thoughout North America.
From disasterously low level around 40%, and number of building projects were stopped…and even rooms were pulled off the market as owners found something better to do with their buildings for ROI.
But going into next year the hotel world is changing.
Travelweek magazine, in an article said that in December 2009, San Francisco’s occupancy rate was 59%, Chicago’s was 45%, Los Angeles’ was 56%, Montreal’s was 67%, and New York City, typically sold out during the holiday season, was 80%. As of October 2010, these same markets have clearly rebounded.
Today, San Francisco boasts a 90% occupancy rate, while Chicago is at 73%, Los Angeles has climbed to 74%, Montreal reports 75% and New York reports 86%. In North America, overall occupancy is at 65%, up 21% in the last nine months.
Toronto and Vancouver maintained relatively high occupancies just under 80% throughout the period.
Industry analysts project this increase to continue through 2011, Travelweek concluded.
What does this mean to you and I? Bargain basement prices are on their way out. There will always be deals into there is a total and complete recovery which is still a ways off. But it is clear we can’t expect the sell off prices that have been around.
Travelweek reported that according to Smith Travel Research, here is the story in Canada. The Canadian hotel pipeline reported 22,363 rooms in October, a decrease of 8.6% compared to September 2009.
With increased demand, rising rates, and dwindling supply, buyers will need to plan on making some adjustments for the 2011 year.