Hoteliers Say Higher Gas Prices Haven't Curbed Hotel Demand in US
Hotels in Oil and Gas Markets Could Benefit
Americans are paying more to put gas in their cars, but the impact on the hotel industry and the summer leisure season is likely to be minimal. Pressure to increase domestic oil and gas production, however, could lead to greater hotel demand from workers in that industry in certain markets.
Americans are paying more to put gas in their cars, but the impact on the hotel industry and the summer leisure season is likely to be minimal. Pressure to increase domestic oil and gas production, however, could lead to greater hotel demand from workers in that industry in certain markets.
According to the Wall Street Journal, average prices for regular gas reached $4.32 per gallon on March 14, having increased for 11 straight weeks. the New York Times reported the average price of gas has fallen to about $4.24 per gallon toward the end of March, which is "still 18% higher than it was last month and 48% more than it was a year ago."
At the same time, U.S. hotel demand continues to recover, as more rooms are being booked weekly and at higher rates.
According to the latest weekly performance data from STR, CoStar's hospitality analytics firm, U.S. hotel industry occupancy for the week of March 13 to 19 was nearly 67%, the highest its been since the summer of 2021. Hotel rates for the week also have increased sharply, up more than 4% from the previous week and 14% higher than they were at this time in 2019.