Four factors are driving these lower rates, including the strong dollar, increased hotel inventory, a surplus of vacation rental units and a summer slowdown in business travel. Big cities like New York City and Miami are seeing fewer international travelers from countries such as France and Brazil, as the strong dollar makes a U.S. visit more expensive.
NEW YORK – Deal Experts at Travelzoo, a global Internet media company, predict that travelers can expect the “deal of the decade” – up to 75% off nightly hotel rates – in many major U.S. cities this summer. Four factors are driving these lower rates, including the strong dollar, increased hotel inventory, a surplus of vacation rental units and a summer slowdown in business travel.
Domestic Impact of the Strong Dollar: Big cities like New York City and Miami are seeing fewer international travelers from countries such as France and Brazil, as the strong dollar makes a U.S. visit more expensive. Lower demand from international travelers leads to better deals from hotels, restaurants and entertainment companies as they try and capture domestic demand to fill the gap. Travelers can stay in a 4-star Times Square hotel for $159 per night this summer, a savings of 50% on regular rates.
Increased Hotel Inventory: In 2014, Las Vegas welcomed a new 1,600-room hotel, the SLS, tipping the total number of Las Vegas hotel rooms over 150,000, and an additional 8,752 hotel rooms were added to New York City’s inventory. An increase in supply leads to more deals. Travelers can stay in a 4-star hotel in Las Vegas for as little as $59 per night, a savings of 75% on regular rates.
Surplus in Vacation Rental Units: Companies like Airbnb and HomeAway are disrupting the playing field by adding accommodation options for travelers, shifting demand away from hotels and pushing rates down.
A Seasonal Slowdown in Business Travel: Business travel slows down in the summer, which means travel companies need to fill the void with leisure travelers. Hotels in cities such as Washington, D.C., Las Vegas, Orlando and New York that see heavy convention and business travel in the fall, winter and spring, drop rates by up to 60% during summer months to fill rooms.
“Americans are in luck if they are planning to stay stateside this summer,” said Gabe Saglie, senior editor for Travelzoo. “With gas prices still low and hotels offering excellent deals, this could be one of the best summers in a decade to explore the nation’s big cities.”
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
