Allison Pohle

speaker

908 appearances 18 recordings 1 series first heard Apr 2021 last heard Dec 2024

Allison Pohle’s voice in public audio — every appearance, attributed to the second.

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WSJ Your Money Briefing · How to Score a $200 Hotel Room for Less Than That · 30 Sep 2024 podcast

So that's one of the reasons that the costs are changing.

So inflation has driven up the cost for operators and they have to pay a lot more for travel.

electricity and maintenance and all the costs associated with running the hotel not to mention labor so they're paying their workers more as well those costs get passed on to the traveler but of course there's also profit margins for these hotel companies and people are paying the rates so as long as the demand is up they are able to keep charging these amounts

No, we're not.

So it's not evenly spread.

So with luxury hotels in particular...

they're able to charge the most.

The highest paying leisure traveler has been very resilient and has been able to stomach these higher rates.

They're very motivated to take their trips in a way that people with less disposable income cannot be.

So what we've seen is among the lowest tier hotels, their rates have been pretty flat over the past year and have even dropped a percentage point or two.

In some ways, yes.

But when we're talking about the room rate itself, that's where we see a lot of these big increases.

And then the taxes and fees are on top of that.

So hotel taxes are a percentage of the total room rate.

And a lot of the fee transparency bills do not require taxes to be shown in the total initial price that travelers see.

So that does mean that on the checkout page, they can be paying 10 to 15 percent

of the room rate cost, and the hotel companies are still in compliance by not showing that on the initial advertised screen.

So a lot of them are still very motivated to travel, but maybe they're changing their destination or they're staying for a shorter amount of time.

So I spoke to one traveler who really wanted to go to Boston this fall, and she said she was shocked by how expensive the hotel room rates were.

So rather than spend four nights in Boston, where she could not find anything decent for under $1,300 for that entire amount of time,

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