And they're not able to meet expectations to match these higher rates. So even though the rates are higher, they say they have increased costs for the wages of their workers and for all of the supplies. What are the hotels saying about that?Īllison Polley: They're saying that they know people are upset, but at the same time, they're dealing with a lot of staffing shortages. But as you said, the reviews have trended significantly lower. But when people are researching places to stay, they often check out the reviews to help them make a decision. So the added fees and higher prices are driving a lot of guest discontent for some of the lesser-expensive segments, but luxury travelers seem to be rolling with it better. And this is because these customers aren't as sensitive to higher prices. On the luxury end of things, though, satisfaction was flat. And what's really significant about that is that in a normal year, analysts say you would not see a decrease or an increase in the double digits from year-over-year. Hotels are also short-staffed, so they're not able to deliver better service in the wake of these higher prices. And the reason for that is all of these added fees and higher prices. The index for budget and upper-midscale properties fell 11 points in the past year, which is the biggest decline in years. Power North America Hotel Guest Satisfaction Index just came out, and that looks at travelers' happiness with their hotel stays. Whalen: So are these higher prices at least translating to better service?Īllison Polley: No. So rather than staying at an upper mid-scale hotel, they might book mid-scale or even budget accommodation. They're also, in some cases, downgrading the type of property that they stay at. 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. And other hotels cost upwards of $300 just for one night. So the company says that's because of demand and market prices. 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 and-Īllison Polley: Yeah. So he's from the Burbank area and is going there just for the night. I talked to one traveler in California who was looking for a one-night stay in Temecula, California. So if you're searching for last-minute deals now, they're nearly impossible to find. Whalen: How is this affecting people putting together travel plans now for the rest of the summer?Īllison Polley: A lot of people booked their travel many months ago. 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. But it isn't just the room rates that have gone up. 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. There are also rising costs for operating a hotel due to increased prices for labor and supplies. That fear has largely gone away, and people have come back to hotels in droves. 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. Whalen: So, Allison, what's driving these prices up so much?Īllison Polley: Demand. Hey Allison, thanks for being here.Īllison Polley: And thanks for having me. So is there any relief in sight? Wall Street Journal travel reporter Allison Polley has been tracking the numbers, and she joins us with more. Hotel rates are up more than 30% over the past year. 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. If the July 4th weekend was any indication, Americans haven't put off their summer travel plans as a result of inflation. Whalen: 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 Polley, for some insights after the break. Research analysts, who I spoke to, mentioned that parking fees, menu prices, pretty much any amenity associated with a hotel has gone up. And so has the cost of getting a hotel room.Īllison Polley: It isn't just the room rates that have gone up. Gas prices and airfares have skyrocketed. Inflation has raced out to 9.1% this year, and that's taken a big bite out of American summer vacation plans. Whalen: Here's Your Money Briefing for Thursday, July 14th. This version may not be in its final form and may be updated. This transcript was prepared by a transcription service.
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