Demand May Be Up, But Hotel Rates Stay Low
Hotels occupancy rates are improving, according to PKF Hospitality Research, which says rates will increase 3.4 percent this year. Despite the increase, PKF expects average daily room rates to drop 1.6 percent—on average, you’ll be spending less on your rooms.
When the hotel business emerges from a recession, price increases lag growth in demand, according to PKF. However, PricewatershouseCoopers projects that room rates will start to increase in 2011, after two years of declines. (Source: PKF Hotel Horizons, PCW Lodging Forecast).
Hertz, Avis Continue Vying to Acquire Dollar Thrifty
Hertz and Avis, who are vying with each other to buy Dollar Thrifty, are both seeking antitrust approval for their proposed deals. Avis said that acquiring Dollar Thrifty would help it compete more effectively against Enterprise, the biggest player in the industry.
Hertz saying that it should face fewer hurdles than rival Avis, because Avis’ low-cost brand, Budget Rent A Car, competes directly with Dollar Thrifty. Hertz has also filed papers with the Securities and Exchange Commission on the matter. (Source: Hertz and Avis).
Avis Promotes Its EPA Certified Green Fleet
Avis said that its 2010 line-up is 62 percent SmartWay Certified, that is, they meet U.S. Environmental Protection Agency (EPA) environmental standards for air pollution and green house gas emission.
Nearly 100 percent of its subcompact, compact and intermediate vehicles are SmartWay certified. (Source: Avis press release).
Consumer satisfaction with hotels and car rental companies is up slightly, but down sharply for airlines, according to the quarterly Market Metrix Hospitality Index.
- Guest satisfaction with hotels is up .4 to 83.3
- Consumer satisfaction with car rental companies is up .8 to 79.2
- Passenger satisfaction is down three points to 75.7, the biggest fall since 9/11.
- Top companies were JetBlue, Enterprise, Ritz-Carlton, Hyatt Place, Red Lion and Microtel
Source: Market Metrix press release