What’s the Economy Doing to Hotel Room Rates?

The economy and gas prices are affecting hotel demand, but are they affecting room rates yet? For every 10 percent increase in gas prices, there is a correlating 0.5 percent decline in hotel demand, said Bjorn Hanson, a hospitality and leisure researcher for PricewaterhouseCoopers, at the 30th annual New York University International Hospitality Industry Investment Conference, held last week in New York.