People going on holidays soon could see an increase in cheaper breaks as hotels cut their prices in order to attract more customers.

People going on holidays soon could see an increase in cheaper breaks as hotels cut their prices in order to attract more customers.

This is according to Konstanze Auernheimer of STA Global, who said that they are upping their ante in the credit crunch in order to ensure that customers continue to flock to them.

“You have less people staying in hotels and [they] are finding other measures like dropping their rates to attract more customers. We are already seeing rates come under pressure,” he remarked.

This could mean a decrease in the price of package holidays.

The comments follow a report in the National earlier this week, which said that some hotels in Dubai have cut their rates by as much as 30 per cent in a bid to attract travellers.

This even includes some four and five-star locations, which are saving people money by cutting surcharges off things like Wi-Fi and air conditioning.

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