What Will Happen to Hotel Prices in 2024?
Yariv Ben-Ari, co-chair of Herrick's Real Estate Hospitality practice, was quoted by GOBankingRates in an article discussing the outlook for hotel pricing in 2024.
"[Prices are rising] due to changes in travel behavior attributable to hybrid and remote working models," said Yariv and added that he attributes rising prices to the uplift in corporate travel, inflation and even upcoming elections.
"This is despite an expected softening of leisure travel demand forecasted by American Express Global Business Travel," Yariv said. "The Hotel Monitor 2024 finds that rates could rise by as much as 17.5% in some cities."
Sporting events also may play a pretty significant role in the uptick in travel and the accompanying rise in hotel prices, with Yariv noting, "2024 will also usher in the Olympic and Paralympic Games, and we should also be mindful of the growing popularity of sports such as Formula 1, and as crazy as it may sound, ‘Pickleball Mania’ travel."
He adds, "Some sites, such as Booking.com are expecting to see more ‘Surprise Travel... There is also a large media push advising people to book in advance, which will also drive demand pricing."