Weekly Lodging Occupancy Rates Drop 2.6%
Oct. 16, 2006. The latest report from Smith Travel Research indicates that occupancy rates for the U. S. Lodging industry continue to be lower than for the same period a year ago.
The recent decline in gasoline prices has not increased occupancy, just as the higher prices this summer did not seem to have hurt occupancy, as many had expected. Total revenue is still higher that that of a year ago because of higher room rates, but these lower occupancy rates are signaling that hotels will have to moderate their rates or potentially lose business during the coming year. Luxury vacation rentals who have not hiked their rates too high this year should do fine in the coming year.
