Report: Travelers may see hotels scale back costs
Created 3/9/2010

Business travelers may be taking to the skies in growing numbers as the economy improved, but that doesn't mean they can expect to find that things haven't changed as a result of the recession.

According to the Hotel Check-In section on the USA Today website, the economy has made some 5-star hotels unable to provide the same level of service as before, which means that a number of them will end up as 4-star hotels in time.

The report noted that luxury hotels had suffered over the past year in regard to rates and occupancies because businesses had cut back on travel and functions. Also, these high-end hotels will reportedly seek to cut costs by running more efficiently while also trying to lure new customers with bargains and other incentives.

Airline and hotel executives have long suggested that business travel is trending back upward, while leisure tourism is also seeing renewed signs of life in many parts of the world.

The upswing in business travel is likely to correspond with increased sales of travel insurance policies because of the financial protection and peace of mind they offer companies whose growth strategies include more time on the road.

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