The Economics of Cheap Hotel Rates

By Chris Linch

The hotel industry is facing hard times. Hotel amenities and staff had to be decreased. Surprisingly though, costomer service marks are rising.

First, jobs in the industry are becoming rare. This shows in the employees themselves, putting more effort in fulfilling their customers' needs than they would have a few years ago, only to keep their jobs. The ones that never refused to pamper their guest had never been fired, after all. The remaining guests are now being held by simply spoiling them and applying the hotels' own programs to push brand loyalty.

Second, the number of guests is shrinking. A decrease of 14% is reported by Smith Travel Research, comparing the numbers of the first week of May to the ones of the year before. A lower drop is forecast by Pricewaterhouse; their estimated fal of 3.5% still shows: the hotel industry is below their 1971 rates!

Let's compare this data with the employment rates of the industry. From June 2008 to June 2009, of drop of 8.3% from 1,955,300 to 1,793,900 is reported by the ADP. Following the current trend in America, the mostly large or midsize hotels of the survey kept more of their staff than smaller hotels.

The high customer satisfaction is not a mystery. The staff are working harder, there are fewer guests per employee, and the prices have gone down by 9.4%. As a hotel guest, wouldn't you feel like a king in your own bargain castle?

As for electronics, carry chargers for your phone, iPod, laptops, GPS devices, and travel alarm clocks, and optionally electronic game gear, if you are travelling with kids. You should also bring sunglasses and bathing suits, to be used at the destination. With this packing list in mind, nothing should keep you from spending a beautiful holiday. - 30412

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