Your membership has expired

The payment for your account couldn't be processed or you've canceled your account with us.

Re-activate

Save products you love, products you own and much more!

Save products icon

Other Membership Benefits:

Savings icon Exclusive Deals for Members Best time to buy icon Best Time to Buy Products Recall tracker icon Recall & Safety Alerts TV screen optimizer icon TV Screen Optimizer and more

    Travel benchmarks show rising hotel rates

    Consumer Reports News: November 16, 2010 03:24 PM


    Falling occupancy rates over the last year have taken a toll on the hotel industry, resulting in quite a few bargains for travelers. But a new government report indicates that travel prices may be starting to inch back up.

    Last month the U.S. General Services Administration (GSA) announced new per diem rates that reflect an increase in the cost of domestic travel. These rates, which are updated at the beginning of each fiscal year in October, provide benchmarks for the cost of lodging, meals, and incidentals for those on the road.

    Although primarily used by government employees and corporate travelers, the per diem rates also provide helpful insights for all travelers. The site provides state-by-state breakdowns of hotel and meal costs for hundreds of communities, which can help you budget more accurately before hitting the road.

    The bottom line is that the GAO's domestic rate for hotels increased from $70 to $77 compared to last year. This is consistent with industry analysts who note the price you'll be paying for a night's lodging has bottomed out, and already has begun to creep up.

    In a revised 2011 forecast that was updated in August, hotel industry research firm STR predicts average daily lodging rates in the U.S. will rise 3.9 percent next year, to $101.55.

    That prediction dovetails with expectations published last month by American Express, which indicated even corporate hotel rates will rise in 2011 by 1 percent to 5 percent, and more so at upscale properties.

    Analysts say the drop-off in occupancy rates after 2008 led hoteliers to cut prices to fill rooms. But that's coming to an end now, so budget accordingly when planning your travels for next year. And follow these tips to get the best possible deal.

    —William J. McGee


    E-mail Newsletters

    FREE e-mail Newsletters! Choose from cars, safety, health, and more!
    Already signed-up?
    Manage your newsletters here too.

    Money News

    Cars

    Cars Build & Buy Car Buying Service
    Save thousands off MSRP with upfront dealer pricing information and a transparent car buying experience.

    See your savings

    Mobile

    Mobile Get Ratings on the go and compare
    while you shop

    Learn more