Monday, January 9, 2012

Media Monday - Hotel Rates Are Up

A very interesting report in the Economist outlines how Hotel rates have been rose in the USA by 4.3% in 2011 (average daily rate = $107.56).  New building of hotel rooms however, only rose 0.6% indicating that the confidence in this growth is tenuous.


I believe this trend will continue.  America in terms if HTM is becoming a mature market with limited growth potential.  This is mainly due to the short-haul market maturing and the long-haul potential being potentially stunted by the recent developments in the airline industry (see this post as a prime example).  This means that if American hospitality companies are to continue to grow profits, they will have to either merge, expand beyond the USA borders and raise prices.  

4 comments:

  1. As if it wasn't hard enough for us to go on vacation already :< I don't understand how the economy can be down but rates are up! Ugh. Maybe that's why I'm going into nursing and not economics.

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  2. I wish that the rates would go down a little. I love taking my family on vacation, but with rising prices in gas, food, and hotels it is getting harder to afford a nice family getaway.

    May be time for another staycation! :)

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