Hotel Rates Drop up to 25 percent for September

The cost of travel in North America is still on the decline, according to Hotwire.com’s September 2009 Hotwire Hotel Rate Report. The monthly survey, which lists the ten North American cities experiencing the greatest rate reductions, found that most hotel pricing drops are occurring outside of large-scale metros.

Topping the list was Minneapolis, with a 25 percent year-over-year reduction for an average room rate of $72. Jacksonville (down 24 percent) ranked No. 2, averaging $72 per night, and Vancouver (down 22 percent) averaged $78 per night at No.3. Other larger mid-size cities making the list were Orlando (No. 4) and Portland (No. 5).

Ranking in at the bottom of the list was Toronto (No. 8), Oahu (No. 9) and Philadelphia (No. 10), all with dips of 15 percent. Average nightly room rates were $92, $73, $70, respectively.

According to Clem Bason, president of the Hotwire Group, the focus of rate reductions in the larger mid-size cities signals the continuance of a hard-hit industry. “Larger cities like New York, San Diego and Miami, were first to discount rates during the initial stages of the economic downturn in 2008, so the drops don’t look as big even though prices are still way down,” said Bason in a statement. “Cities like Orlando, Portland, and Indianapolis are now following suit.”