Miami hotel prices have risen more than 50%
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travel can be much more expensive than before, given inflation and other challenges facing the hospitality sector, but some destinations have been hit harder than others. Among the summer hotspots studied in the United States, Miami has seen the most dramatic price increaseswith hotels now costing 56% more than in 2019.
While we’ve covered the ongoing aviation crisis extensively, the fallout from Covid is affecting not just flights, but the wider travel industry as a whole. Within the United States, hotel prices have skyrocketed in several cities, Miami being just one example. Unfortunately, this is an aggravating trend and prices could rise further during the summer:
Miami is now the most expensive of the 7 summer destinations
Proving that the long-term effects of Covid on the travel industry are not yet fully understood, Miami has seen hotel room rates rise over the past three years. As fewer people traveled and hotel leaders were forced to scale back operations, Florida’s top tourist destination saw hotel room prices rise 55.6%.
This means that, for the first five months of 2022, tourists in Miami had to pay $369.51 per night, compared to $237.41 for the same period in 2019 – before Covid was declared a pandemic. The research, which was conducted by Bloomberg with help from Google data scientists, looked at hotel rates in seven popular summer markets.
Surprisingly, Miami came out ahead of six others on the list. It even beat the traditional luxury retreat of the Hamptons, now taking second place with a 51% increase in hotel rates. Rounding out the top three, Massachusetts’ scenic Nantucket Island, where more expensive retreats are typically found, saw another 45.7% price increase.
Throughout the United States, hotels are now 33% more expensive, according to hotel market data provider STR. More worryingly, these U.S.-wide estimates are based only on national averages for April and May, and disregard summer rateswhich are generally much higher than those observed in the low season.
Comparatively, Miami hotel rates during the summer aren’t actually dramatically higher than those in other cities, primarily because travelers don’t necessarily prioritize Florida in the summer, booking it for the summer months instead. colder winter. However, the coastal metropolis remains one of the most expensive destinations for tourists in the United States.
Although Miami-bound travelers have probably saved up before visiting and are probably looking for a bit of luxury anyway, mid-July rates can easily reach $534 per night in hotels like Faena. At the Betsy, rooms can cost up to $417, and while there may be more affordable options on AirBnB, those aren’t economical either.
What is causing the skyrocketing prices?
Last year, Alex Miller, Founder and CEO of Upgraded Points, already predicted that hotels would get more expensive this season — a lot more, in his own words. According to Miller, now that gasoline prices are on the rise, labor shortages are worsening and “demand is at an all-time high,” rates are set to rise “significantly.”
Miller’s detailed hotels experience varying percentage changes, with leisure destinations like Miami are seeing the biggest increases. These can be as low as “just a few percentage points to well over 100%”. Inevitably, the recent staffing constraints reported in various sectors will only add to these prohibitive costs.
“We are now seeing higher travel demand, combined with limited capacity,” Miller added, confirming that the mass layoff seen during Covid has resulted in a shortage of housekeepers in hotels. Coupled with inflation, which has a direct impact on toiletries, food, and other items that hotels tend to order, costs could rise further.
Here’s how you could save even more travel this summer
Does that sound daunting to you? There are always tricks you can use to save as much as possible when you go on vacationlike using this new travel sheet to find cheaper flights, booking accommodation early before prices skyrocket during peak season, or calculating gas prices in advance before you hit the road.
There may be no magic solution to macroeconomic factors, especially in a difficult year like 2022, where other viruses have emerged and war is being waged in Europe, but every penny counts. With these tools, you can maximize your chances of getting best deals when booking a trip to Miami and avoiding unnecessary expenses.
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