It should come as no surprise that the economy is hitting the travel industry hard.  Hotels all over the country are cutting rates and announcing creative promotions to try to lure in more guests.  It’s crucial that hotels book rooms, because they don’t get a second chance to fill a guestroom for the night once the sun comes up.

As you hunt for holiday travel bargains, be sure to check out 10 cities that are showing the biggest drop in hotel rates.

Top 10 Cities For Hotel Rate Reductions

Houston, Texas

1. Houston, Texas

Hotels in Houston showed the biggest drop in room rates from November 2008 to November 2009.  A stay in a 4-star hotel in Houston is averaging just $74 per night right now.

2. Tampa, Florida

Hotels in Tampa actually tied Houston with a 24% rate reduction from last year.  The average rate for a 4-star hotel in Tampa right now is $65 per night, and may include a view of white sandy beaches.

Miami, Florida

3.  Miami/Ft. Lauderdale, Florida

Ouch.  The Florida travel industry is not doing well with two cities showing up on the price drop list.  A night in Miami will run you a little more than a Tampa stay at $89 per night.

4. Nashville, Tennessee

Thinking of taking a visit to the Grand Ole Opry?  Now might be the perfect time with rooms in 3-star hotels going for $68.

Oahu, Hawaii

5. Oahu, Hawaii

Not even paradise is immune from the wheezing economy.  Room rates in Oahu, Hawaii are down 18% from the same time last year.

6. San Diego, California

San Diego is listed as one of the Top American Cities To Visit, and now it comes at a bargain.  San Diego hotel rates are down 16% to an average price of $72 per night.

view from Mount Bonnell in Austin, Texas

7.  Austin, Texas

Texas joins Florida as a state with double entries on the list.  However Austin seems to be doing a little better than Houston with just a 15% drop in average hotel rates.

8.  Minneapolis, Minnesota

Plan a holiday shopping trip to the Mall of America and you’ll pay an average of $72 per night this year in a Minneapolis hotel.

Phoenix, Arizona

9.  Phoenix, Arizona

With it’s dry heat, Phoenix is a popular destination for northerners looking to escape the winter cold.  But that hasn’t prevented local hotels from cutting rates by 14%.

10.  Las Vegas, Nevada

Save a little money on sin this year.  One night in a 4-star Las Vegas hotel costs an average of $87 right now, 13% less than you would have paid for the same room last November.

Experts are saying that things are looking up for the economy, but the hotel industry has yet to feel the boost.  If you can afford to take advantage of the travel industry’s woes, now might be the time to pounce.

List and date compiled by Hotwire.

Photo credit: eflon, alexdecarvalho, skyseeker, wyscan, kevindooley on Flickr.

Now you can book a room in NYC and have enough left over to hail a few cabs

According to a recent article in the New York Times, hotel rates in Manhattan have been drastically reduced to counteract sagging occupancy rates.

Now, the New York Times is concerned with whether or not this is a wise move for hotel operators.  They question whether this will actually attract new visitors and ultimately improve the financial health of Manhattan properties.  The article discusses whether there are better alternatives for hotels to entice guests to stay.

I, personally, don’t care if it’s good for the hotel industry or not.

I am simply thrilled that the end result makes Manhattan a more affordable place to visit.

Hotels in Manhattan are, on average, cheaper to book than they were a year ago.  That’s good news for budget conscious travelers with an eye towards the Big Apple.  Period.

How much cheaper?

According to the New York Times article, the average price for a Manhattan hotel room in 2008 was $280 per night.  The average hotel room rate for 2009 is $198 per night.  Spread that out over a 3 night stay, and you’re saving almost $300 for the exact same hotel stay.

You’ll find comparable savings if you choose to stay in a luxury hotel in Manhattan.  Rates for luxury hotel rooms in Manhattan have gone from a 2008 average of $401 to a 2009 estimated average of $289 per night.  Now might be the best time to finally splurge on a little New York City luxury, if your budget will allow it.

How long will these savings stick around?

Obviously, no one can say for sure, and even estimated guesses are still just guesses.  But experts predict it will take years before hotels can get their rates back up to pre-economy crisis levels.  While customers will happily jump on a good deal, they’re much more reluctant to go along with rapidly increasing prices.

The bottom line is this:

If you’ve been considering a trip to New York City, now is a great time to finally book the trip.

Photo Credits: Miss Britt on FlickR