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markets
by leon on October 5, 2009

Want a ride in a Harley? Check into a hotel.
The Los Angeles Times reports that hotels are now giving away rides on Harley Davidsons, and in Mercedes, Porsche or BMW convertibles to attract patrons. Times are tough and hotels are coming up with all sorts of sweeteners to attract cash-strapped customers.
Other deals include a round-trip flight on any airline, $100 in dining coupons, free breakfasts and cocktails, tattoos along with tequila and ice. Desperate times call for desperate measures.
As the LA Times reports: "Occupancy rates nationwide have been hovering at below 60% this summer, the lowest levels since the aftermath of the Sept. 11, 2001, terrorist attacks. Hotel revenue per available room has dropped nationwide by nearly 20% this summer, to less than $60, the steepest dive in 22 years, according to industry reports. Even worse, hotel analysts don't expect the industry to rebound until 2011 or later. Experts blame the slump on a 'perfect storm' of conditions, including the recession, an increase in new hotel openings in the last two years and a dramatic drop in business travel as corporations cut budgets. Promotions and package deals have long been a staple of the hotel industry, particularly during slow periods. But industry experts say more hotels are relying on them to survive the recession. Not only are the deals more common but many are more creative than ever before."
Recently I did a blog entry on how the luxury hotel business had become the latest victim of the recession. But if this latest report is right, it suggests the malaise has spread right through the industry.
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