Why Higher Hotel Rates Aren’t Translating to Better Service
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What is the main topic discussed in this episode?
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Here's your money briefing for Thursday, July 14th. I'm J.R.
What’s causing the recent surge in U.S. hotel room rates?
Whelan for The Wall Street Journal. Inflation has raced out to 9.1% this year, and that's taken a big bite out of American summer vacation plans. Gas prices and airfares have skyrocketed, and so has the cost of getting a hotel room.
It isn't just the room rates that have gone up. Research analysts who I spoke to mentioned that parking fees, menu prices, pretty much any amenity associated with a hotel has gone up.
So are those higher prices translating to better service? And what are the chances of hotel prices actually coming down anytime soon? We'll call in our travel reporter Allison Poley for some insights after the break.
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Which extra hotel fees have risen besides nightly room rates?
They want your innovation. ReliaQuest fortifies your business with agentic defense, AI that detects, contains, and eliminates cyber threats in minutes. It helps your security team move faster at the work that matters most to protect the business now and delivers insights to help them predict what's next. ReliaQuest, agentic defense for the enterprise. Learn more at ReliaQuest.com. That's R-E-L-I-A-Q-U-E-S-T.com.
If the July 4th weekend was any indication, Americans haven't put off their summer travel plans as a result of inflation. But whether they drive or fly to their destination, the price for putting a roof over their head once they get there is going through the roof. Hotel rates are up more than 30% over the past year. So is there any relief in sight? Wall Street Journal travel reporter Alison Pohle has been tracking the numbers, and she joins us with more. Hey, Alison, thanks for being here.
How is increased demand and operating cost driving hotel pricing?
And thanks for having me.
So, Alison, what's driving these prices up so much?
demand. A lot of people are traveling in record levels and in the past they may have opted to stay in short-term rentals because they were nervous about staying in hotels. That fear has largely gone away and people have come back to hotels in droves. There are also rising costs for operating a hotel due to increased prices for labor and supplies. So just to give you an idea for how this is translating to travelers who are looking for hotels, in the past month, the daily rate for a mid-scale hotel was about $119 per night, and that's up from about $103 per night during the same period in 2019. But it isn't just the room rates that have gone up. Research analysts who I spoke to mentioned that parking fees, menu prices, pretty much any amenity associated with a hotel has gone up.
And that can make it really pricey to stay at certain properties such as resorts that have a lot of these extra add-ons.
How is this affecting people putting together travel plans now for the rest of the summer?
A lot of people booked their travel many months ago.
Why are last-minute hotel deals nearly impossible to find this summer?
So if you're searching for last minute deals now, they're nearly impossible to find. I talked to one traveler in California who was looking for a one night stay in Temecula, California. So he's from the Burbank area and is going there just for the night. And in searching for hotels, The cheapest rate that he could find for this Saturday was about $250 for one night at the Motel 6.
$250 for a Motel 6?
Yeah. So the company says that's because of demand and market prices. And other hotels cost upwards of $300 just for one night. When people are seeing these higher prices, sometimes they're planning a shorter trip and staying at the property that they really like or even looking at other destinations in part because of the hotel cost.
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Chapters
8 chapters
1
What is the main topic discussed in this episode?
0:00–0:39
2
What’s causing the recent surge in U.S. hotel room rates?
0:39–1:22
3
Which extra hotel fees have risen besides nightly room rates?
1:22–2:18
4
How is increased demand and operating cost driving hotel pricing?
2:18–3:30
5
Why are last-minute hotel deals nearly impossible to find this summer?
3:30–4:51
6
Are higher hotel prices translating into better guest service and satisfaction?
4:51–6:31
7
How are staffing shortages affecting hotels’ ability to meet guest expectations?
6:31–7:20
8
What relief or alternatives could travelers consider if hotel prices stay high?
7:20–7:53
Speakers
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