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Inflation to fall more slowly for hotels than in general

  • Automatic
  • 20 May 2024
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This article was written by Hospitality Today. Click here to read the original article

Across Europe, hotels are likely to feel the brunt of cost pressures for several more quarters

May 20, 2024

Tourism Economics reports that the rate of inflation for several key components of a hotel’s daily operations – particularly food costs and staff wages – is outpacing the general rate of inflation. The pressing issue is to determine the threshold at which consumers in the hotel industry begin to feel the financial strain.

Key takeaways

  • Prices remain well above pre-pandemic levels, but consumers continue to prioritize travel and last year’s high prices did not significantly impact the market;
  • Inflation is slowing, allowing wages to catch up, which may increase people’s willingness to spend on travel, hotels and experiences;
  • Increased travel spending from markets such as China and India could help certain European destinations regain market share.

Get the full story at HNN

Please click here to access the full original article.

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