Hotel Rates Going Down (but Airfares Are On The Rise)

The good news is that hotel rates are expected to go down in 2010. The bad news, on the other hand, is that airfare is expected to be on the rise during the same time period.

Hotel rates are expected to fall by 1%-4% for mid-range rates, and 3%-6% for upper-range rates. According to the provided article, the hotels are being forced to cut rates to try and draw customers back into the travel fold.

Demand for air travel is expected to rise in 2010 and the airline industry is looking to capitalize. They are able to take advantage when demand improves because they were able to cut flights during the recession period. According to American Express Business Travel, overall airfare prices will increase by up to 5% for short, economy flights, and 1%-6% for longer, business class flights.

Source: MSNBC