On The Call: Marriott President Arne Sorenson

The Associated Press

Marriott International Inc., like many of its competitors in the world's hotel industry, have dramatically slashed rates to entice guests to stay at their facilities. Executives figure it's better to sell a room at a small profit, than not sell one at all.

At the Bethesda, Md.-based company, rates for everyday leisure guests were down about 13 percent for the quarter. Meanwhile, rates for corporate bookings, which are prices usually negotiated by corporations for their employees, sank 19 percent.

But as the economy begins to slowly rebound, executives said those rates won't stick around for long.

Marriott President and Chief Operating Officer Arne Sorenson discussed the rates during a call Thursday with investors.

QUESTION: How long will discounted rates for hotel rooms stick around?

RESPONSE: "We're nearing an inflection point. It's a pretty great time to book business. Because inevitably there will be better rates today available for 2010, and maybe even in 2011, than hopefully the rates that we are going to be offering a year from now."