Are Hotel Prices Going Up?
With the global pandemic and the subsequent lockdowns and travel restrictions, the tourism industry took a significant hit. However, with vaccination programs rolling out worldwide, the world is slowly starting to open up again, and people are traveling, albeit cautiously. In light of recent events, many have been asking, “Are hotel prices going up?” We’ve done some research to help you understand the current prices and what to expect in the future.
Factors Affecting Hotel Prices
Before we dive into answering the question, let’s first look at the factors that affect hotel prices. Here are some of the significant factors:
The location of a hotel is one of the most significant factors affecting the price. Hotels in popular tourist destinations like Hawaii or New York City will be more expensive than those in less popular areas. Also, hotels that are close to attractions like beaches, theme parks, and shopping centers will generally be more expensive.
The time of the year can have a significant impact on hotel prices. For instance, hotels in popular ski destinations such as Aspen or Whistler will be more expensive during the winter months. Likewise, hotels in tropical destinations will be more expensive during the summer months.
The demand for hotel rooms can significantly impact their prices. For instance, hotel prices during events like the Super Bowl or Coachella will be much higher than usual. Likewise, hotels in areas with high demand like New York City will have higher prices during peak tourist seasons.
The Current State of Hotel Prices
According to recent data, hotel prices in some areas have gone up since the start of the pandemic. For example, based on a recent survey by American Hotel and Lodging Association, hotel prices in college towns have gone up by 62% since the start of the pandemic.
The hotel prices in many cities are returning to pre-pandemic levels now that more people are traveling again. Cities like New York City, Las Vegas, and Miami that have seen a surge in tourism over the summer of 2021 have seen a significant rise in hotel prices. Moreover, smaller cities like Toronto and Vancouver that have a strong summer tourism season have experienced a similar price increase.
The trend of increasing hotel prices isn’t limited to just North America either. A recent survey by the research company STR revealed that hotel rates in the Asia-Pacific region were up by 46% in August compared to the same time last year.
The Future of Hotel Prices
It’s difficult to predict what the future holds for hotel prices. However, many analysts have predicted that prices will continue to rise as tourism bounces back. Some have speculated that tourists may end up paying as much as 20% more than pre-pandemic rates when traveling to popular tourist destinations like Hawaii or Florida.
The continued rise in hotel prices is due to multiple factors, including increased demand, a shortage of staff, and the high cost of maintaining and cleaning rooms to enforce safety protocols. In some cases, hotels may also have to make necessary changes to their facilities to meet safety guidelines.
How to Get Affordable Hotel Prices
Getting an affordable hotel room is still possible, even during a time of price increases. Here are some tips you can use to save money on your next hotel stay:
Book Directly with Hotels
Many hotels offer discounts or exclusive deals when you book directly with them on their website or over the phone. Plus, you won’t have to pay any fees that third-party booking sites usually charge.
Use Price Comparison Sites
Price comparison sites like Kayak, Expedia or Booking.com can help you find deals on hotel rooms. They compare prices across multiple websites, giving you a more comprehensive view of what’s available.
Be Flexible with Your Travel Dates
Being flexible with your travel dates can help you snag a good deal on a hotel room. If you’re not bound to specific dates, you can take advantage of off-season or mid-week deals.
Consider Alternative Accommodations
Alternative accommodations like hostels, Airbnb, or bed and breakfasts can offer lower prices than traditional hotels. While they may not have all the amenities of a hotel, they can still be an excellent option for budget-conscious travelers.
In conclusion, hotel prices are indeed going up in many parts of the world. The pandemic, increased demand, and a shortage of staff and supplies are some of the factors contributing to the price increase. However, affordable hotel prices are still possible by booking directly with hotels, using price comparison sites, being flexible with your travel dates, and considering alternative accommodations. By using these tips, you can still enjoy your vacation without breaking the bank.