Hotel Rates on the Rise As Travel Demand Ticks Up – CNBC

  • Hotel and resorts rates remain lower than a year ago, on average, but are rising in sync with increased interest in travel among Americans.
  • Travel booking tech firm Koddi says hotel demand was up 13.7% the week of April 11.
  • Traditional travel accommodations will rebound despite a migration to vacation rentals.

If you’re thinking of booking that hotel stay you’ve postponed since the pandemic began, you may want to reserve a room right away.

Nightly rates, while still somewhat lower than a year ago, are slowly rising to match or — in some popular destinations — surpass pre-pandemic prices, according to travel booking technology company Koddi.

Over the last 30 to 45 days, average hotel prices have risen appreciably and are now just 5% lower than one year ago, says Deep Kohli, senior director of client services at the Fort Worth, Texas-based firm. They were as much as 11% cheaper a few weeks earlier.

“We expect it to increase based on the demand uptick we are seeing for summer travel,” said Kohli, adding that Koddi is seeing airfares rise in concert with hotel rates as demand increases. The week of April 11, U.S. hotel demand was up 13.7%, the second-highest level this year. It had peaked in March for spring break travel.

There is a correlation between vaccination deployment rates and interest in travel, according to Koddi.

“In the U.S., we see a sustained correlation between regions that have comparatively high numbers of vaccinations per 100 people compared to the recovery of the travel intent and travel demand for those areas,” a company spokesperson said in a statement.

Accommodations in high-demand regions — near beaches and national parks, for example — are now above pre-Covid levels, Kohli noted, although major metro areas like New York and Chicago are still seeing depressed rates thanks to a slower recovery.

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