Posted 4/16/2024, 8:49:00 PM
Budget Hotels Hit Hard as Inflation Causes Travelers to Cut Back
- Budget hotel vacancies top 50% in Q1 2024 as inflation-weary travelers cut back spending
- Occupancy down 5% and revenues per available room dropped 6.5% vs last year - the worst performance of any hotel segment
- Higher end hotels continue to perform well with corporate and luxury leisure travel
- Room rates mostly flat for luxury hotels but down 4% for economy properties
- Consumers earning under $50k much more likely to reduce hotel stays due to inflation than higher earners
