Luxury hotels still discounting in 2010

If you didn’t book a luxury trip last year, don’t worry; you didn’t miss your big opportunity. Without a doubt, 2009 was hell on the luxury travel market. It was rough on just about every luxury business, frankly. And while the economy looks like its taking a step in the right direction this year, it’s not doing so fast enough for luxury travel providers. Look for another year of discounts, according to industry tracking firm Rubicon. Properties like the Four Seasons, St. Regis, Ritz-Carlton and Mandarin Oriental are going to have to bite the bullet again in 2010.

According to Rubicon, luxury hotels are booking more business at this point in the year than they did in the same period in 2009 – but only 4.6 percent more. Meanwhile, the average rate they’re fetching is off 13.2 percent. Clearly, the upscale properties are buying guests with discounts. Of course, luxury on sale still isn’t cheap. You’re looking at $325 a night instead of $389 a night a year ago, Rubicon reports, based on bookings made as of February 1.

“Hotel companies are not rushing to lift the rates and slow that tide of recovery,” Rubicon CEO Steve Swope told USA Today. “So the other good news is: there are some real bargains out there for consumers. Now’s a good time to get out and travel. In another 18 to 24 months, the rates seen today are not going to be there anymore.”

Starwood accuses Hilton of corporate espionage

Two of the largest hotel chains in the world are locked in battle — legal battle. Starwood Hotels has accused 44 of Hilton‘s top executives of stealing trade secrets. Christopher Nassetta, the CEO of Hilton, is alleged to have known about this activity, according to an amended complaint that Starwood filed with the Manhattan federal court. The object of affection thievery was the luxury category of Starwood’s portfolio, including the St. Regis, W and The Luxury Collection.

According to Starwood’s complaint, Nassetta is said to be under “intense pressure” to deliver the financial returns expected by the Blackstone Group, the private equity firm that paid $26 billion for Hilton in 2007. The complaint further states, “Intense pressure — whether from Blackstone or otherwise — is no excuse for corporate espionage, and it is no excuse for the massive theft and widescale use of confidential and proprietary Starwood information.”

According to a USA Today report, Hitlton’s spokesman, Aaron Radelet, declined to comment, because the company doesn’t discuss pending litigation.

Starwood is looking to appoint monitors to make sure that Hilton complies with all injunctions, and it’s also seeking a court-imposed “time out” period during which Hilton wouldn’t be able to move forward with its luxury brands.

[Photo by p c w via Flickr]