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Hotel Rates Up

September 18, 2012, 9:50 PM by Angela Kennecke

Hotel Rates Up
SIOUX FALLS, SD -

Those days of getting cheap hotel rooms have come to an end.  Over the summer, hotel rates jumped on average by 17 percent and they're not expected to drop to recession levels again.

Hotel rates peaked in 2007, but plummeted to new lows in the recession by 2009.  But now they're on their way back up.

"It's not air.  Air, especially for leisure travel, has been staying the same in most markets.  The increase is in hotel rates and resort rates. It's supply and demand. It's strong," Lorie Buus of All About Travel said.

Hotel rates have risen anywhere from five to 45 percent, with the biggest price jump at hotels associated with theme parks.  That has travelers making some tough decisions.

"Maybe not go for a luxury property.  Go for a moderate property; decide the courtyard view is okay instead of an ocean front.  They may go five nights instead of seven nights," Buus said.

You can get better pricing, but you'll need to book very far in advance.

"30 to 65 percent less per night costs, if you do it early and I'm talking six to nine months, 10 months," Buus said.

At the same time hotel prices are rising, customer satisfaction is dropping according to recent consumer surveys.

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