Slowing Consumer Spending to Hit US Hotel Market

30th April 2008 (Last Updated April 30th, 2008 09:21)

Economic conditions are expected to force US consumers to cut holidays costs, which could impact on the hotel market, according to an online poll. AOL Travel polled 6,700 Americans on their vacation plans for the summer. Around 57 percent will spend less on holidays this year

Economic conditions are expected to force US consumers to cut holidays costs, which could impact on the hotel market, according to an online poll.

AOL Travel polled 6,700 Americans on their vacation plans for the summer.

Around 57 percent will spend less on holidays this year than last year and close to 20 percent will rent a house rather than stay in a hotel to save on food costs.

AOL Travel General Manager Jim Kovarik says the summer could be the worst for the hotel industry since 2002, the year after the September 11 attacks.

“Heading into this year there was a lot of concern about the economy factors. They are anticipating a tough year,” he says.

American Hotel and Lodging Association spokesman Joe McInerney told Reuters high petrol prices will simply result in more people taking shorter trips closer to home, and the weak dollar will continue to attract overseas visitors.

By Elizabeth Clifford-Marsh