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PERSONAL FINANCE AT WALLETPOP

SMALL BUSINESS

Hotels Lure Guests With Gas Incentives

By KELLI B. GRANT,

SmartMoney.com

Posted: 2008-04-15 21:33:28

Skyrocketing prices on everything from gas to food will force many families to look no further than their own backyard when it comes to planning their vacation this summer.

With flight cancellations, exorbitant fuel costs and bankruptcies crippling the airline industry, airfare is getting even pricier and planes more overcrowded. While on the road, gas prices have hit a national average of $3.37 -- and they're only expected to go higher. By summer, drivers could pay as much as $3.60 a gallon, with many regions topping $4, according to the Energy Information Administration's Short-Term Energy and Summer Fuels Outlook.

Oddly enough, the pain at the pump may help some summer travelers actually save on their getaways. From big-name hotels to tiny bed & breakfasts, the lodging industry has started rolling out incentives that help guests offset some of the costs of hitting the road. While some properties are offering prepaid gas cards (ranging from $10 to $50), others are extending cash bonuses or reduced room rates to guests who drive a hybrid vehicle, or take a train or bus to their destination.

Subsidizing the price of gas to lure in cost-conscious guests is nothing new for the lodging industry. It's long been used as a marketing tactic to entice travelers to extend the distance they're willing to travel and hopefully prod them into considering pricier room rates. However, in the past these promotions were few and far between until prices at the pump started jumping, says Bjorn Hanson, a hospitality consultant for PricewaterhouseCoopers. Now, hundreds of properties across the country have jumped on board.

"Hotel managers uniformly have incentive to put heads in beds," says Mark Eble, regional vice president for PKF Hospitality Research, an Indianapolis-based industry consulting group. "Hotel rooms are the ultimate perishable commodity -- they make eggs look sturdy. If you don't sell the rooms tonight, they're gone forever." Hoteliers' biggest concern is that, should gas hit a nationwide average of $3.50, guests will start cancelling reservation en masse. (A price of $3.50 a gallon is considered the psychological tipping point for consumers. At this price, most drivers will decide to drive less rather than cut back on other expenses, says Troy Green, a spokesman for AAA.)

Hanson and Eble project that, as gas prices climb higher, even more travel incentives will be rolled out.

For consumers who are tempted by gas promotions, a smart strategy is to shop around and consider just how much that $50 prepaid gas card will take off of the final bill. Fees like parking, for example, could potentially offset the discount. "When you get right down to it, a $50 gas card is $50," points out Anne Banas, executive editor for SmarterTravel.com, a travel advice site. "There might be another hotel nearby that's cheaper to begin with, which would give you more to spend on gas and other parts of your vacation." It's also important to call the property directly to confirm details of the offer, including which brand of stations its prepaid card is good at, and whether they require proof of mileage or the amount of gas used during your trip.

Here are a few current deals that can help make your summer road trip more affordable:

Bed and Breakfast Promotions

· C.W. Worth House, Wilmington, N.C. -- Guests who bring a gas receipt dated with the day of arrival will be reimbursed the total - up to $30 - at checkout. Offer good through July 2, 2008.

· High Haven House Bed & Breakfast Inn, Vineyard Haven, Mass. -- Visitors from New England get a $75 gas card. Those traveling from New York or farther get a $150 gas card. Offer good through Oct. 31, 2009.

· Stevenswood Lodge, Little River, Calif. -- Stay for two nights and get a $50 gas card. Show up in a hybrid vehicle, and earn an additional $100 cash rebate. Offer good through June 19, 2008.

· The Wallingford Victorian, Wallingford, Conn. -- Guests who travel to this B&B by train (the station is five blocks away), get a 10% discount off the room rate. Regular rates start at $129. Offer good through Dec. 31, 2008.

(For more deals, check the gas promotion sections on BedandBreakfast.com and BnBFinder.com.)

Hotel Promotions

· Hilton Hotels -- Select locations are offering gas cards with any stay. At the Hilton Santa Fe, for example, guests receive a $20 gas card for each night they stay. Offer good through March 1, 2009.

· Holiday Inn -- Select locations offering gas cards with any stay. At the Holiday Inn San Francisco Fisherman's Wharf, guests receive a $25 gas card. Offer good through Dec. 31, 2008.

· Marriott -- Select locations offering gas cards with any stay. At the Renaissance Portsmouth Hotel & Waterfront Conference Center in Portsmouth, Va., use promotion code P53 for a gas package including a $25 gas card and free in-room movie. Offer good through Dec. 31, 2008.

Tourism Board Promotions

· Branson , Mo. -- Save 20 cents a gallon at the Branson 1st Stop Travel-Plex when you show your gas coupon validated by an area hotel. Coupon is valid for seven days after check-in. Offer good through Dec. 31, 2008.

· Lancaster County, Pa. -- Stay a night at one of more than 30 participating hotels, and earn a $10 gas card. Stay two or more nights, and get a $25 card. Offer good through June 30, 2008.

2008-04-15 11:45:13

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39 comments

FoxSnooze 04:28:08 AM Apr 21 2008

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Read what GB58 wrote, and you'll see what's really wrong with this country. Everything he said is 100% ... wrong. But enough people will believe it, blindly, without doing one bit of independent research, to keep us a perpetual downspin of adolescent ignorance. Obama was half right when he said people like GB58 are bitter. But what Obama should have said is that they are bitter, ... and dumb as rocks. The worst part of it all is that we will have to hit bottom before we realize that GB58 isn't just part of the problem, he and his kind ARE the problem.

GB58 03:48:17 AM Apr 21 2008

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WE CAN ONLY BLAME JIMMY CARTER BACK IN 1979 AND HIS ADMINISTRATION AND THE DEMOCRATS FOR PUTTING OFF ENERGY EXPLORATION AND GIVING IN TO THE EPA LOBBYIST FOR THIS SITUATION 99% OF AMERICANS ARE BLIND AND ARE HOOTING AND HOLLARING FOR HILLARY AND OBAMA AND IF WE ELECT ONE OF THEM WE WILL GO BACK TO HIGHER INTEREST RATES, HIGHER UMEMPLOYMENT AND HIGHER INFLATION MOST OF US KNOW WHAT HAPPENED IN THE LATE 70'S AND IT TOOK REAGON AND THE REPULICANS TO BRING US OUT OF MISERY

Ridersanon 01:50:21 AM Apr 21 2008

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Hey to Wfredjan again : You've written up two grammar nightmares, so far. Why don't you quit smoking pot, or drinking, and look to the yellow pages for the nearest grammar class to sign up for?

Ridersanon 01:45:46 AM Apr 21 2008

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Wow to Wfredjan : Never in my history of reading these posts, have I seen such poor spelling and grammar. You need to get to summer ( grammar ) school ASAP!! And don't let my dog bite ya in the arse! Ha

wfredjan 01:27:45 AM Apr 21 2008

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I SEE THE FAULT IN OUR SYSTEM NEW ELECT WHO WE THINK IS GOOD BUT INFACT THEIR BAD(DUE TO POST ELECTIVE SYNDROME ) that's a period that they have to pay back ;in favors to the R I C H 'that bought them;then they have to slowly look good ;some can for year's ..then other's get out ;last but not lest we have a BUSH colition rich in direct rapeing for profit and AMERICAN demise;';invent a war perptrate it ;explote it ...make big protit's for the those on the take ....TAKE HEED AMERICA ;WE'ER ON A PRISCIPCE THAT WILL FALL LIKE ROME AND WE ARE TO BLAME...head in sand stupidity !!!!!

Ckfred 01:24:48 AM Apr 21 2008

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I tell you what is limiting our vaction plans. It's not the price of gas. It's my wife's inability to schedule a vacation. She is getting a new position in her company, and her new boss has a very agressive schedule for getting new programs underway.

We won't have a week-long vacation until next March, when everyone else is on spring break.

wfredjan 01:13:21 AM Apr 21 2008

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WHEN WILL THESE BLOOD SUCKING RICH GO AWAY;RAGIAN LET THEM, EAT OUR GUT'S HOW LONG WILL IT LAST ''TRUCKING IS ALMOST DEAD ,FOOD STUFF'S WILL RIAISE UNTIL WE CAN'T AFORRD TO EAT I GUESS AS IS THEIR EAT SH== AND DIE ATTUDE SUGGEST...IN WAR IT'S TREASONTO GOUGH THE PEOPLE AND I'T'S O K WITH BUSH ISN'T IT HE'S THERE GOOD OLE BOY

M CRIST 12:42:05 AM Apr 21 2008

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RIP OFF!!!!!!!!!!!!!

Whicks1970 12:30:05 AM Apr 21 2008

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We are spoiled.
1. You save gas at 60MPH instead of 75
2. It cost gas while we sit on our butts at a drive thru instead of walking in.
3. Smaller fuel efficient (less comfortable) vehicles will save you $$$$.

The government is not responsible for helping us if we are too stupid/lazy/hard-headed to help ourselves.

There is more gas being used every year and less oil in the ground every year. I am not a green nut but do the math. We all need to try to help out ourselves.

Al1pa 12:12:35 AM Apr 21 2008

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LOL...You people amaze me with stupidity. You would sell out for a lousy $ 25.00 dollar gas card? Believe me, they aren't giving you a thing as they raised their rates and your just getting the old rate. LOL.

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