Half price hotel rooms sound good
By Amanda Kendle on Tuesday, March 18th, 2008

I’ve just read a prediction that makes the future sound bleak for owners and staff of European hotels, but possibly great for us travellers. The MD of the large Supranational Hotel group, Niels Pedersen, is talking up a “downward re-adjustment” for the tourism sector across Europe in the next few years.

Half price hotel rooms sound good

He seems to think that over the last seven years, growth in the European tourism industry has been excessive and an adjustment is due. Some of Pedersen’s predictions include a 50% cut in hotel tariffs and a 25% drop in the volume of hotel bookings for holiday packages.

He also thinks business travel will be reduced and that companies will want their employees staying at cheaper hotels than the current five-star favourites. While this sounds bad for the travel industry in general, I can’t help selfishly thinking that a hotel room for 50% less would be great.

Pedersen also sees another good side, in that hotels will be forced to improve their service standards and offer more amenities like wireless internet access to be able to remain competitive. I find it hard to believe that the situation is as drastic as Pedersen says, but what do you think.

Any business travellers out there who have already been told to cut back or anybody who agrees that hotel rates could fall by half?


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7 responses to “Half price hotel rooms sound good”

Benedict Adam | 19 March, 2008 at 3:25 pm

Wheres that hotel room?
It looks lovely!

Karen Bryan | 20 March, 2008 at 9:38 am

I think that in the wake of low cost airlines people are asking themselves why spend all that money on a fancy hotel. It’s especially true if you’ll only use your hotel as a bed for the night because you’ll be out all day exploring the area that you’re visiting.

I think that budget chains such as Travelodge are great value as you bag a family room for only £19 a night , room only if you book 18 days in advance on the non refundable Saver rate. Holiday Inn Express have advance booking family rooms including breakfast for £39 a night.

I’ve had pretty good rooms during the majority of my stays at these chains. You can read my review of the best UK budget chain here:
http://www.europealacarte.co.uk/blog/2007/12/20/the-best-uk-budget-hotel-chain/

Amanda Kendle | 20 March, 2008 at 1:20 pm

Good point Karen. I guess it seems a bit ridiculous to pay 200 Euros a night for accommodation if your flight only cost you 30 or even 100 Euros.

Karen Bryan | 25 March, 2008 at 10:48 am

Yes, Amanda, I’m looking for a balance, I don’t want to camp or sleep in a hostel dorm but I don’t need a fancy hotel either. just somewhere clean and relatively quiet to sleep for the night.

Nicola Grimshaw | 26 March, 2008 at 11:17 am

I would like to think that rates may be cut by up to half; I might actually be able to afford to stay in some of the hotels I sell, for my own holidays (and not just for ‘educational’ purposes)! However, like Amanda, I think this is unlikely to happen. If you travel out of season, there are already great deals to be had if you look in the right places;-).

I have to disagree with Karen Bryan, as it is certainly not true of my business, that people are looking to spend less on hotels. On the contrary, I find if people fly cheap they then tend to spend the difference on staying chic, but I think that is perhaps more down to the customers I have and the way in which I propose particular itineraries. I’m sure Karen knows what sells well for her. My customers tend to give me a rough budget for the package then I will say you can have this okay four star hotel and a standard scheduled flight or you can have this fantastic five star and fly low cost for a similar price.

Having said that, for my own holidays (especially ‘extra’ ones becuase I’ve seen a flight that is being given away) I would probably look for a cheaper hotel.

Amanda Kendle | 26 March, 2008 at 11:54 am

That’s the other side of the coin, Nicola, that cheap flights + expensive hotel make a good holiday and the costs average out. But just like you said, I personally want to save money on every part of it, because then I’ll have more money left over to take the next trip! I guess it’s a balance of time, money and interests.

Nicola Grimshaw | 26 March, 2008 at 6:22 pm

I know everyone has their own priorities and ‘who are we to judge’ but, like Amanda, whilst I’m a real sucker for luxury I like quantity too. Sometimes when customers book business and first class flights which usually end up costing between 50-75% of the budget, I think if I had that budget I would blow it on the hotel or another trip. I can live with a few hours in economy, although when I have been lucky enough to be upgraded it is absolutely fantastic. Anyway, I’m certainly not complaining as it’s what pays my bills and subsidises the rest of us to travel in cattle class.

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