It is possible that the rates are too high.
Hawaii and Florida have reached record highs this summer due to surging demand.
Resort destinations aren't the only ones where the phenomenon is present. The U.S. hotel industry's average daily rate for the week of June 11 was $155, which was the second- highest nominal level ever recorded. The rate was 23% higher than the week before and 15% higher than the week after.
Hotel executives point to rising operational costs as a factor behind rate hikes. During a media Q&A session at the 44th Annual NYU International Hospitality Industry Investment Conference, held in New York last month, Chris Nassetta cited more costly labor and the fact that other input costs have gone up dramatically.
Nassetta said that everything is more expensive.
Hotel rate increases seem to be higher than inflation.
40% of hotels had a weekly average daily rate that was 20% or more above the year-ago comparables for the week of June 11.
Travelers may have reached their limit when it comes to hotel prices.
According to a recent report from Inntopia's DestiMetrics, the summer booking pace has slowed considerably at several key Western mountain destinations. Booking pace for arrivals at 17 mountain destinations across Colorado, Utah, California, Nevada, Wyoming, Montana and Idaho has dropped 40.4% from last year. The booking pace has fallen from the previous year.
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