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Hotels.(CR Investigates)

Consumer Reports

| July 01, 2004 | COPYRIGHT 2004 Consumers Union of the United States, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

The Internet has set the lodging industry on its ear, leaving consumers less loyal to "brands," such as Holiday Inn, and more likely to pick a hotel by price, the way they'd buy a quart of milk. Before booking a room, about 4 of 10 travelers visit Web sites such as Expedia, Travelocity, and Hotels.com, which promise low rates at a wide range of hotels.

To fight back, many big hotel chains guarantee they'll beat any online rate And they offer frequent guests perks such as double air miles, even free rooms.

There's another reason that consumers have the upper hand: The supply of rooms outstrips demand. Hotels didn't stop building despite the sour economy ...

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