When Will Hotel Business Go UP in Canada?

Just when we started seeing some positive changes in the food services and retail side of the hospitality industry in Canada, I came across this article on the dropped hotel rates for our top 5 cities. While not encouraging, still noteworthy information for hotel managers.....

Strengthening Canadian Dollar Drives Hotel Rate Drops and Great Deals

SAN FRANCISCO, May 12 /PRNewswire, a leading discount travel site, today announced the results of the May 2010 Hotwire[R] Canadian Hotel Rate Report, which features the top five cities in Canada where hotel rates have dropped the most. When combined with Hotwire's already discounted prices, the Hotel Rate Report helps guide customers to the destinations that will maximize their travel dollars. Edmonton tops this month's rate report with an 11 percent drop, and after a six-month absence, Vancouver makes a welcome return with a 3 percent drop.

Hotel prices across Canada continue to fall as many popular destinations are still seeing declines in leisure travel that traditionally fills up rooms this time of year. This trend is being driven by the strength of the Canadian dollar against both the U.S. dollar and Euro. Travelers appear to be choosing destinations where they can get more native currency in exchange for their money, causing hoteliers in cities like Halifax and Vancouver to drop prices to compensate.

In addition to the exchange rate effects, cities like Edmonton and Ottawa are not seeing a return in business travelers, which is causing hotels to slash rates even further in those areas. So for travelers looking to stay closer to home this summer, they are bound to find a destination that suits their budget and taste, whether it is scenic Niagara Falls, history-rich Halifax or the country's capital, Ottawa.

When compared to the same time last year, the top five hotel price reductions for May 2010 include:

Example of a Current Hotwire Deal, CAD$/Night

Hotel Market: Edmonton, AL
Price Drop: 11%
Rank:3-star
$96

Hotel Market: Halifax, NS
Price Drop:9%
Rank:3-star
$76

Hotel Market: Ottawa, ON
Price Drop:8%
Rank:3-star
$90

Hotel Market: Niagara Falls, ON
Price Drop:5%
Rank: 3-star
$97

Hotel Market: Vancouver, BC
Price Drop: 3%
Rank: 3-star
$92

"Leisure destinations across Canada are offering some great deals this month on Hotwire," said Clem Bason, President of the Hotwire Group. "As long as the Canadian dollar stays strong against international currencies, travelers should continue to see low hotel prices throughout the summer."