As demand drops at hotels, you score with deals | The Honolulu Advertiser

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As demand drops at hotels, you score with deals | The Honolulu Advertiser | Hawaii's Newspaper

Posted on: Sunday, November 23, 2008

As demand drops at hotels, you score with deals

By Beth J. Harpaz
Associated Press Travel Editor

Hawaii news photo - The Honolulu Advertiser

An overall view of the Atlantis resort in the Bahamas. Experts say it is generally cheaper to book a room in a resort on weekdays and offseason when there are fewer tourists.

JOHANSEN KRAUSE | Associated Press

The Marina at the Atlantis resort. Before booking a room, ask about discounts and comparison shop online.

NEW YORK — When the economy was booming, many hotel companies began building new properties. Some of those are opening now, resulting in an increase in hotel room supply this year, just as demand is dropping, according to Jan Freitag of Smith Travel Research.

Excess supply means opportunities for consumers. Here are some strategies for booking hotels on a budget.

BASICS: It's generally cheaper to stay in major cities on weekends, when there are fewer business travelers, and in resort areas on weekdays and offseason, when there are fewer tourists.

Visitors may save by booking outside main tourist areas. For San Diego, for example, "you could stay in Carlsbad or even up as far as Oceanside," said Joe McInerney, CEO of the American Hotel & Lodging Association. But research the cost and time of commuting in each day, to make sure the tradeoff is worth it. Hotels on Long Island or Westchester might be cheaper than Manhattan, but your savings might be offset by daily train and cab fare or tolls and parking.

You'll also pay less outside of peak holiday time, and some new hotels charge lower introductory rates. Places hard-hit by the downturn may also offer deals.

REWARDS PROGRAMS: Most hotel chains have loyalty or frequent guest programs that allow you to use points for free nights. Joining usually costs nothing; points accumulate and often don't expire; and most hotel chains now have no blackout dates for using points to book rooms.

Many hotel chains offer cobranded credit cards with enough bonus points for a free night. Sign up for a new Marriott Visa card and get a certificate for one free night's stay, plus 25,000 bonus points, which are enough for another night's stay at Marriotts in many markets, including Salt Lake City, where you can ski. If you travel with a spouse or friend, that person can sign up for his or her own card and get points for free nights as well.

Research how fast points accumulate before signing up. Different chains have different systems. With Hilton, you get up to 20,000 bonus points for signing up for Hilton HHonors Platinum Credit Card from American Express (10,000 points for your first purchase with the card, 2,500 points for each of your first four stays at Hilton Family hotels). Cardholders can also earn five points for every dollar spent at Hilton Family hotels, grocery stores, drugstores, gas stations, restaurants and on U.S. postal services and wireless phone bills.

BOOKING: Book on the hotel's own Web site, usually the place to get the best price. Most brands have a guarantee that if you find a lower rate, they'll match it or pay the difference, or you can stay for free.

Ask for discounts for AAA membership, military service or corporate rates. Alternatively, figure out how much you want to pay, the type of hotel you'd like to stay in, and bid for a room through a booking site like Price line.com. You won't know which hotel you're staying at until after you've paid, but you can specify the category of hotel using the star-ratings system.

See what rates are offered at specific hotels online, then call the hotel directly and ask if there's a lower rate. A third of the time there will be.

"When there's an empty room, it's just losing money. Any amount of money you pay for that room is found money," said Tim Zagat, who has just published "Top U.S. Hotels, Resorts & Spas 2009."

Zagat encourages consumers to negotiate hard. "Ask for package rates, ask for the lowest rate, ask for an upgrade. There are all kinds of deals out there. Not to ask is to look stupid," he said. Call the hotel at its local phone number, not the chain's 800 number. The branded hotel company has limits on what it can do, but the individual owner can do anything he feels like, Zagat said.

Look for free Internet service and free breakfast; avoid rip-off goodies in the mini-bar, and use your cell so you don't get charged for the hotel room phone.

Despite the economy, Freitag of Smith Travel says he doesn't think hotel prices will drop the way they did after Sept. 11. But he does think consumers can expect better value for what they pay — better views, free Internet, pay for two nights and get a third free.

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