Hoteliers across the board will have to deal with cost creep for the remainder of 2024
Jun 10, 2024
During the Data Insights session at the 2024 NYU International Hospitality Industry Investment Conference, STR President Amanda Hite highlighted the growing gap between the wealthy and the less fortunate, which she attributed in part to persistently high inflation.
Key takeaway
- Upper tier segments, from upper upscale to luxury, experienced a 2.1% increase in demand and a 1.8% increase in revenue per available room (RevPAR) during the first four months of the year;
- In contrast, the lower tier segments experienced a 2.5% decline in demand and a 2.4% decline in RevPAR during the same period;
- Hoteliers need to be strategic in their operations, as they are unlikely to be able to offset rising costs by simply raising rates.
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