A room at the Orlando Hotel in Los Angeles. (The Orlando Hotel )
With travel demand continuing to grow, the nation's hotels are expected to raise rates an average of 3.6% in 2012, according to a study based on future bookings.
The projected growth in demand, up 3% over last year, in addition to the higher rates represent the latest sign that the travel and hospitality industries continue to recover from the economic meltdown of 2009 and 2010, according to the study by New York-based TravelClick, a company that provides booking software and business data for major hotel chains worldwide.
Much of the rebound in the hotel industry comes from the resurgence of business travel, which generates the lion's share of revenue for most major hotels.
"The business travel segment continues to be strong," said Tim Hart, executive vice president for business intelligence solutions at TravelClick.
Over the last three years or so, hotel rates have been a moving target. They dropped for 18 straight months starting in the fall of 2008, pushed down by slumping demand.
As Americans began to travel again, hotel rates started to climb, beginning in spring 2010.
Over the next 12 months, the demand will be highest in such cities as Detroit, Indianapolis, Houston, Miami and Charlotte, N.C., according to TravelClick. The rates in those cities are expected to climb between 3% and 5%.
In California, demand will grow by about 5% in both Los Angeles and San Diego and nearly 4% in San Francisco. Meanwhile, the average daily rates are expected to jump nearly 2% in Los Angeles, 1% in San Diego and 11% in San Francisco.
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