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U.S. hotels fear year of thrifty travelMay 16, 08 | 1:57 am
About 57 per cent of the nearly 6,700 respondents to the online poll said they have less money to spend this year on summer vacations than they did last year and are looking to save costs. Jitters about the U.S. economy and record gasoline prices are forcing Americans to cut back, said Jim Kovarik, the general manager for AOL Travel, which commissioned the poll. Nearly 20 per cent of people said they planned to rent a house so they could save money by cooking, rather than stay in a hotel, the poll showed. And nearly a third planned to stay with friends or family to save money. This summer could be the worst for U.S. hotels since 2002, the first vacation season after the Sept. 11, 2001, attacks, Kovarik said. "Year after year after Sept. 11, hotels had started to come back and capacity increased," he said. "Heading into this year there was a lot of concern about the economy factors. They are anticipating a tough year." But Joe McInerney, of the American Hotel and Lodging Association, said high gasoline prices simply mean travellers will go on shorter trips and stay at hotels closer to home. The weak dollar could also mean that more Europeans and Canadians will vacation in U.S. hotels. "Advanced reservations are strong for the summer," McInerney said. Still, the weak economy has already hurt profits at some hotels. Earlier this month, Marriott International Inc., the world's No. 3 hotel operator, reported sharply lower quarterly profit, hurt by higher costs as the slowing U.S. economy takes its toll. Starwood Hotels & Resorts Worldwide Inc., which operates the W, Sheraton and St. Regis hotel brands, also reported a lower quarterly profit last week, with chief executive officer Frits van Paasschen citing slowing growth in revenue per available room, a common industry measure of growth. 
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