New York feeling like its old self again, higher prices and all

The Big Apple is finally biting back.

At your wallet.

For months after the Sept. 11 attacks that toppled the World Trade Center towers and took thousands of lives, New York’s self-confidence seemed shaken, but now it’s looking like its old self again. The bulls are grazing on Wall Street (although suf- fering some indigestion over inflation concerns), a typical Manhattan apartment commands nearly $1 million, and visitors are returning. For tourists, this can mean only one thing: higher prices. Hotel rooms are costlier and, starting Monday, so are cab rides. Here’s a look at the price increases and how to counter them:

* Taxis: Monday marks the first pay raise for New York cabbies in eight years.

“We finally gave drivers a living wage,” said Matthew Daus, chairman of the New York City Taxi & Limousine Commission, which approved the fare increase.

“Tourists have enjoyed one of the lowest taxicab fares in the country when they come to the city,” Daus said. With the increase, according to the commission, the city’s fares will rise toward the middle rung of those charged in 13 major U.S. cities that have more than 3,000 taxicabs each.

Knowing this may not ease the pain of shelling out $45 plus tip for a cab ride from JFK Airport to Manhattan (up from the old $35 flat rate) or watching the meter flip faster on cross-town jaunts.

The average 2.64-mile taxi ride will cost $9.45, up from $6.85, the commission calculated, including a new $1-per-trip “peak hour” charge from 4 to 8 p.m. Mondays to Fridays. Among other changes, the first one-fifth mile, or “drop,” will be $2.50 (up from $2), and each additional one-fifth mile will be 40 cents (up from 30 cents).

To cut costs, Daus suggested sharing a cab. Or do as many New Yorkers do: Walk or take the subway.

JFK passengers can hop the new AirTrain, www.airtrainjfk.com, to the Jamaica or Howard Beach station, then catch the subway. The combined train-subway trip totals $7 to Manhattan.

* Hotels: The average nightly room rate at New York hotels was $182 in March, up 5.5% from the same month last year, according to PKF Consulting, an international advisory firm for the industry based in San Francisco.

The increase is not surprising, given that many people stayed home last spring as the nation entered into the Iraq conflict. Low occupancies make for lower rates.

And $182 is not a record for the month; the top was $208 in March 2001, said PKF Senior Vice President John A. Fox, who is based in New York.

But here’s a PKF number that got my attention: New York hotels in March were fuller than they have been in 35 years during that usually slow month. Nearly 85% of rooms were occupied.

“What hotels are seeing is a real resurgence of inbound travel,” said Ray Vastola, president of New York-based Quik book.com, an Internet site that markets independent and boutique hotels at a discount. “With that, rates are picking up also.”

Fox said he expected New York hotels to finish the year with rates 5% to 10% higher than last year. He said the cheap dollar was keeping many American tourists in the U.S. and encouraging more Europeans to visit New York, the favorite U.S. destination for foreigners. The result is more demand for rooms.

Fox suggested visitors book early to be sure of getting a room at a price they can live with.

“As hotels fill up, they’ll get less flexible on room rates,” he said.

Other ways to save are to shop on the Internet; look at the Upper West Side and other areas less frequented by tourists; schedule weekend stays at hotels that cater to businesspeople (because they may have more empty rooms then); consider independent and limited-service lodgings; and watch for specials.

NYC & Co., which markets city tourism, will offer seasonal discounts to American Express card users at hotels, restaurants and other attractions; watch for “NYC Summer Breaks” at www.nycvisit.com.

Summer vacationers get a break in New York anyway because hotel rates typically don’t hit their peak until fall or even December. But it may be tough to get a room Aug. 30 to Sept. 2, when Republicans hold their national convention at Madison Square Garden.

* Restaurants: In recent years, “prices have remained fairly stable ... while people have been struggling to get business back,” said Chuck Hunt, executive vice president of the city’s restaurant association. The average meal price in the annual Zagat Survey in New York City was virtually unchanged between 2003 and this year, except for a modest 1% increase at the 20 most expensive places.

But that may be changing as demand rises. Zagat found New Yorkers are eating out more this year. OpenTable.com, an online reservation service, seated 77% more diners in New York in February than in November 2003. The moral: Reserve well ahead for popular places.

This year is bringing a bevy of fancy new openings. At one of them, Masa Takayama’s Masa at Time Warner Center, fixed-price menus start at $300.

You don’t have to pay hundreds for a memorable meal in New York. For two weeks starting June 21, dozens of the city’s top restaurants will offer three-course lunches for $20.12 and dinners for $30.12 during an annual promotion. (Visit www.nycvisit.com about a month ahead for details.)

Restaurants outside Manhattan and ethnic eateries can be year-round bargains. With an estimated 23,000 places to eat in the five boroughs, there’s no lack of competition. Shop around.

Finally, if cabs, hotels and restaurants leave you with little cash, don’t despair. There’s still plenty of free and low-cost fun in New York, such as summer theater at Shakespeare in the Park and “pay what you wish” evenings at world-class museums. For a list of inexpensive activities, search for “shoestring” on www.nycvisit.com.

Jane Engle welcomes comments but can’t respond individually to letters and calls. Write Travel Insider, Los Angeles Times, 202 W. 1st St., L.A., CA 90012, or e-mail jane.engle@latimes.com.