| Follow us on Twitter |
An article, published in today NY Times writes that for the first time in 6 years Thanksgiving travel is expected to decline. This is not good for the travel industry as the Holiday travel season is the time of the year when the travel agencies can command the higher rates to the popular destinations that the travelers love to go during winter months.
Even the lower gas prices don't help. Although the gas prices are coming down, still less people are expected to travel by car during this Holiday travel season.
“There is no part of the industry that will go unscathed,” said Henry H. Harteveldt, a travel analyst with Forrester Research.
"Now travel companies are rushing to fill space, with resorts in popular holiday hotspots reducing minimum stay requirements, throwing in extras and cutting prices."
As of Monday, Expedia.com was offering a four-night Bahamas cruise from Miami for just $99 a person. “That’s $25 a night including room and board and entertainment,” said Chris McGinnis, editor of the Expedia Travel Trendwatch. “You can’t live at home for that cheap.”
For hotels, the holiday outlook is not looking very merry or bright. “This will be one of the largest declines in hotel occupancy,” said Bjorn Hanson, an associate professor at the Tisch Center for Hospitality, Tourism and Sports Management at New York University. “The only comparable periods were 2001 and the early 1970s.”
With declines in bookings across the board, Mr. Hanson predicts hotel occupancy rates to decrease to as low as 53 percent this holiday period from about 58 percent last year.
“It’s just really hard to find some good news — except for travelers,” he said. “Without trying too hard,” he said, consumers will be able to find hotel rates 10 percent lower than last year.
It seems that the longer you wait the better chance you will have to get the best air ticket discount during this holiday travel season.
Posted November 25th, 2008 by Armen Hareyan
