For the hotel industry, the first half of each year is worth celebrating. The Super Bowl, spring break, graduation and Memorial Day – these are some of the main reasons why hotels make huge revenue in the beginning of every year.
Hotel Pricing Index is based on bookings made on Hotels.com sites and provides a regular report on global hotel pricing. Just the first half of this year, it shows that the average price per room, per night in the U.S. increased by 5% compared to the same period last year. With the index hitting 118, 2014 nearly hits an all-time high.
This sounds like a good news, but this rate is slightly lower compared to the rates in recent years, according to Taylor Cole, a spokesperson for Hotels.com North America.
She also added, “We’re trending towards pre-recession prices and travelers are getting more confident with the economy. New construction, availability of supplies and oil drilling can definitely have an impact on hotel prices.”
In the U.S., 47 out of 50 cities are experiencing increased year-over-year. Nashville, Tennessee is at the top of the list. This year, the Nashville airport’s annual passenger increased by 6%. The growing demand caused by various events in Nashville like the CMA Music Festival encouraged the increase in hotel rates. The Music City, for example, just had a 20 % increase, which is equivalent to $164 per night.
San Francisco and Seattle also experienced a 12% increase and their rooms currently cost $208 and $180/night respectively.
Las Vegas, travelers’ favorite destination, is one of the many cities with an average rate below $137. Cole says, “The $137 average could be due to guests upgrading rooms. Prices are going up, but there are still some great deals to be had in larger markets, especially if you check the surrounding suburbs.”