Gas Prices, Inflation Don't Worry US Hotel Executives
Hoteliers Point to 'Low Correlation' Between Fuel Prices and Demand
The price of gas continues to rise in the U.S., but hoteliers aren't nervous that surging fuel prices or inflation might dampen summer travel demand.
The price of gas continues to rise in the U.S., but hoteliers aren't nervous that surging fuel prices or inflation might dampen summer travel demand.
Nationwide, gas prices are nearing an average of $4.50 per gallon, and could exceed $5, according to CNN Business. CNBC reports the indexes that track the price of gas and groceries rose 1.7% and 1.5%, respectively, in April.
In a data analysis published in March, STR — CoStar's hospitality analytics division — found that historically, gas prices have a limited impact on hotel demand in the U.S.
During first quarter earnings conference calls, hotel executives who addressed rising gas prices and inflation indicated they are optimistic that there will not be a drag on leisure demand this summer.