who seek the lowest cost lodging rates consult the Internet. Limited-service
hotels have been the major beneficiaries of the increased
use of the Internet to
book room reservations. Travelers simply log on
to one of the many booking
sites available (or even the Web site of a hotel brand)
to find the property that
offers the lowest rate for desired dates. The result
has been a downward pres-
sure on ADR as hotels seek to secure their share of the available market.
Limited-service hotels appeal
to cost-conscious travelers, so
these properties
benefit most from comparison shopping. In other
segments of the lodging
market (e.g., resort and convention hotels), the Internet’s impact
in reducing
room rates has been less pronounced.
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