Three ways to book hotels - on a budget

When the economy was booming, many hotel companies began building new properties. Some of those are opening now, resulting in a 2.5 percent increase in hotel room supply as demand is dropping by 1 percent or more, according to Jan Freitag of Smith Travel Research.

“We’re going to see a substantial decline in occupancy this year,” agreed Bjorn Hanson, an associate professor of hospitality and tourism at New York University’s Tisch Center.

Excess supply means opportunities for consumers. Here are some strategies for booking hotels on a budget.

1 Know the basics

Weekends vs. weekdays. It’s generally cheaper to stay in major cities on weekends, when there are fewer business travelers, and in resorts on weekdays and offseason, when there are fewer tourists.

Sleep in the ‘burbs. Visitors to urban centers may save by booking outside tourist areas. For San Diego, “you could stay in Carlsbad or even up as far as Oceanside,” said Joe McInerney, CEO of the American Hotel & Lodging Association. But research the cost and time of commuting each day to make sure the trade-off is worth it.

Research new hotels. You’ll pay less outside of peak holiday time, and some new hotels charge lower introductory rates. Canyon Ranch’s new destination spa in Miami Beach has starting prices at $200 through Dec. 3. Rates go up Dec. 4-23, starting at $650 a night, and Dec. 24-Jan. 1, to $1,100 a night.

Cash in on the economy. Places hard-hit by the downturn may also offer deals. The Bahamas’ Atlantis mega-resort, with 3,000 rooms on Paradise Island, has laid off 800 workers. It’s now offering a three-night package starting at $299 a person, including two sessions interacting with dolphins (normally $110 each), and $99 airfare each way on JetBlue from New York (book by Dec. 18, offer ends Dec. 25, atlantis.com, blackouts apply). An Atlantis package offered this time last year started at lower rates ($259 a person) but did not include dolphins, airfare discounts or rebates. Also, the Nassau Paradise Island Promotion Board is offering a $250 rebate on air-inclusive packages (three- to six-night stays, book through Nov. 30 for travel completed by Feb. 28).

2 Rewards programs

Join for free. Most hotel chains have loyalty or frequent guest programs that allow you to use points for free nights. “Every traveler should be a member of every frequent guest program,” Hanson said. Joining usually costs nothing; points accumulate and often don’t expire; most hotels now have no blackout dates for using points to book rooms.

Compare credit offers

carefully. Many hotel chains offer co-branded credit cards with enough bonus points for a free night. Sign up for a new Marriott Visa card and get one free night’s stay, plus 25,000 bonus points, which are enough for another night’s stay at Marriotts in many markets. With Hilton, you get up to 20,000 bonus points for signing up for Hilton HHonors Platinum Credit Card from American Express. For overviews of what each hotel credit card offers and how much you must spend to accumulate more points, check out creditcards.com

/travel-rewards.php.

Protect your credit history. Be aware, new credit cards impact your rating. For example, applying for four or five hotel credit cards to get several free nights with sign-up bonus points “can signal to lenders that you’re desperate for credit,” said Gail Cunningham, spokeswoman for the National Foundation for Credit Counseling. That can hurt you if you’re looking to get a loan approved.

3 Book smarter

Check the hotel’s Web site. “That’s where you’re going to get the best price,” said McInerney of the American Hotel & Lodging Association. Hanson said, “most brands have a guarantee that if you find a lower rate, they’ll match it or pay the difference, or you can stay for free.” Ask for discounts for AAA membership or corporate rates.

Bid on a room. Figure out how much you want to pay and the type of hotel, then bid for a room through a booking site like Priceline .com. You won’t know which hotel you’re staying at until after you’ve paid, but you can specify the category of hotel using the star-ratings system. Priceline says its customers pay 46 percent to 48 percent less than if they booked through the hotels.

Don’t call the chain’s 800 number. See what rates are offered at specific hotels online, “then call the hotel directly” and ask if there’s a lower rate, Hanson said. “The branded hotel company has limits on what it can do, but the individual owner can do anything he feels like,” agreed Tim Zagat, who has just-published “Top U.S. Hotels, Resorts & Spas 2009.” Negotiate hard - ask for package rates, the lowest rate or an upgrade.

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