Rates plummet in Florida
Both hotels and airline rates are plummeting far below expectations due to slacking demands. Some tracking firms predict a drop of 17.1% revenue per available room in the 3rd quarter of 2009. Some merchants like Smith Travel Agency are very disappointed with today's report which came on the heels of earlier predictions of declines of only 5,9% by the the Central Florida & Lodging Association.
Not only have hotels experienced a slump in the market but carriers have also slashed prices launching fare wars resulting in some amazing prices. Many in the hospitality market felt that the industry would maintain prices at a higher rate.
Eye-popping ticket prices as low as $39 were on sale Tuesday by Orlando carrier AirTran Airways for . Others followed suit including Orlando International airport's largest carrier, Southwest Airlines with a 2-day sale of $30 one-way on the same route. A third airline, Frontier, also followed suit offering low fares starting at $34.
Carrier Southwest suffered a 2.1% decrease in the month of June cutting capacity by 3.8% compared with 2008. The company also disclosed that it's traffic fell by 2.2%.
Not only have hotels experienced a slump in the market but carriers have also slashed prices launching fare wars resulting in some amazing prices. Many in the hospitality market felt that the industry would maintain prices at a higher rate.
Eye-popping ticket prices as low as $39 were on sale Tuesday by Orlando carrier AirTran Airways for . Others followed suit including Orlando International airport's largest carrier, Southwest Airlines with a 2-day sale of $30 one-way on the same route. A third airline, Frontier, also followed suit offering low fares starting at $34.
Carrier Southwest suffered a 2.1% decrease in the month of June cutting capacity by 3.8% compared with 2008. The company also disclosed that it's traffic fell by 2.2%.
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