Why Hotel Prices Are Climbing and Likely Will Stay That Way

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Man looking at hotel charges
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After more than two long years of fighting COVID-19, people are gleefully returning to their old ways of life and taking vacations en masse once again.

The trend — and the general notion that people are thumbing their noses at COVID-19 in a determined effort to vacation to their heart’s content — has been deemed “revenge travel.”

In May, global leisure and business flights exceeded those of 2019. It was the first time since the beginning of the coronavirus pandemic to record that kind of growth, CNBC reports.

But this reinvigorated desire to travel also is pressuring travel prices, from airfares to hotel room rates. In fact, room prices are rising in many hotel chains, and the trend is not expected to abate anytime soon.

The CEOs of Hilton, Marriott and IHG Hotels & Resorts all tell CNBC that their room rates are climbing. As Hilton CEO Chris Nassetta said to the financial news network:

“The price has gone up for everything, so we’re not different than when you go to a gas pump or the grocery store or any other aspect of life; it’s discretionary.”

Another factor soon may drive travel demand — and with it, travel prices — even higher. President Joe Biden has decided that air travelers from abroad no longer need to be tested for COVID-19 before entering the U.S.

Previously, travelers from overseas were required to show proof of a negative test taken one day before they flew to the U.S.

Keith Barr, the CEO of IHG Hotels & Resorts, tells CNBC that demand for hotel rooms likely will increase through at least the rest of the year and that additional price increases may be on the way.

How to save money on hotel rooms

You cannot completely shield yourself from these rising prices. However, there are things you can do to bring the costs down incrementally.

For example, it’s possible that you could negotiate a waiver on some fees. As we have reported:

“Some hotels will waive fees if you tell them at check-in that you won’t be using the items — such as Wi-Fi, the gym or the pool — that are covered by the fees.”

For more, check out “11 Tips for Avoiding Ridiculous Hotel Fees.”

There are plenty of other ways to reduce the cost of lodging. You can learn about them in:

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