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Sky-High Hotel Rates Causing Biz Travelers to Get Creative

As average hotel rates hit $304 in Manhattan and $208 in Chicago, analysts say we're hitting the ceiling.

An article in yesterday's USA Today indicates that the urban hotel price escalation in the U.S. may be slowing down soon. The main reason? Customers have started to just say no and look for other alternatives.

The article highlights some business travelers' strategies, such as staying at a colleague's house to avoid paying $400 a night, or staying on the edge of town to avoid central business district rates. You know things have gotten out of hand when a Comfort Inn can charge $200 a night and still have 95% occupancy. That's the current case with the Comfort Inn near the Empire State Building.

There's good news on the horizon though, according to Brad Garner of Smith Travel Research.

Growing resistance from consumers indicates that hotels are nearing "that magic ceiling" for rates, he says. In Manhattan, the USA's most expensive hotel market, the average daily rate reached a record $304 in September, the most recent month for which Smith has numbers.

Even a hotel association president quoted in the article says she is going to end up paying $480 a night in New York. We think we could do better, but in her position she probably can't use Priceline or Hotwire....

Related Stories:
· As hotel rates rise, travelers seek aid [USA Today]
· Comfort Inn Manhattan reviews [TripAdvisor]