U.S. Luxury Hotels Move Downscale In Travel Crisis

LOS ANGELES— Luxury hotels, faced with sagging business in the ailing travel sector, have begun making their rooms available through online clearinghouse services, often at sharp discounts, according to Reuters. The list of outlets to pop up on bulk-dealer websites— like Quikbook.com and Hotel Reservation Network’s (HRN) allluxuryhotels.com—includes the Waldorf=Astoria and the Plaza in New York, the Mondrian and Raffles LErmitage in Los Angeles, and nationwide W hotels, owned by Starwood Hotels & Resorts Worldwide. Though Ritz-Carlton and Four Seasons Hotels have historically avoided clearinghouse sites, at least one of the Four Seasons hotel in Las Vegas has broken ranks and is now listed on the HRNs allluxuryhotels.com. The shift is primarily due to the drastic hit the segment took after Sept. 11. According to the most recent figures from Smith Travel Research, occupancy rates for luxury hotels in September were down 29.3% versus a year ago, while the average drop for all hotels was 15.9%. The extra pinch for luxury hotels has led many to reconsider listings on clearinghouse sites since Sept. 11. The surge in incremental business has helped Quikbook to launch the “premier collection” last month, and HRN to add about 500 hotels to its data base in the last two months. SOURCE: Reuters