Americans have chosen to celebrate Independence Day in Cancun Mexico.  Deep travel discounts have made Las Vegas and Cancun, Mexico, the hottest destinations for the holiday weekend, according to Barney Harford, chief executive officer of Orbitz Worldwide Inc.

Recession-ravaged Vegas and swine flu-tarnished Cancun are offering bargain getaways at a time when an “absolutely unprecedented” number of hotels are adding deals to already reduced room rates, Harford said today in a New York interview.

U.S. consumers coping with the worst recession since World War II have pulled back travel spending, leaving more empty hotel rooms and airline seats. Global passenger traffic fell 9.3 percent in May from a year earlier, the International Air Transport Association said. Less than 56 percent of U.S. hotel rooms were occupied in May, down 12 percent from a year ago, and average room rates tumbled 9.8 percent, according to Smith Travel Research.

“You’re seeing hotels respond aggressively and very promotionally, particularly in leisure destinations where price really does stimulate demand,” Harford, 37, said. Orbitz tracks 14,000 hotels running promotions, such as 40 percent-off room prices or a fourth night free, where “typically having a couple of thousand hotels on sale would be a huge sale,” he said.

Source: Bloomberg Press/ www.bloomberg.com