Asian Wall Street Journal

October 12^th 2001

Asia Wall Street Journal. Weekend Journal - "Cheap Sheets" p. 9

While many U.S. carriers offered steeps cuts in the wake of the Sept. 11 attacks, Asian airlines so far have been slow to follow their lead, holding prices steady and in some cases even adding surcharges. But relief for travelers might be the way in the form of a cheaper night's sleep.

Asia-hotels.com, an online booking agency, says it has taken in 40% fewer reservations than last year, according to the company's chief executive, Jon Stonham. Already, prices have fallen at some hotels by more than 35% compared to this time last year, even though October is the peak business travel season for cities like Hong Kong and Guangzhou. "It's not going to be the bumper month that it used to be." says Mr. Stonham.

Hong Kong's Excelsior, for example, today rents out rooms for $140 that went for as much as $218 a year ago.

In fact, the fancier the hotel, the bigger the discount is likely to be. That's because the high-end hotels are the hardest hit. High-end hotels, Mr. Stonham says, are more reliant on customers from the U.S. and Japan, and "they get scared the most."