Hoteliers anticipate greater pricing power in 2024
Rate growth showed some signs of moderating at the end of 2023, but STR's latest forecast for 2024 still has rates growing by 3%
Pricing power in the global hotel industry has led the recovery from the COVID-19 pandemic, and hoteliers expect it will be sustainable this year, according to a survey by STR.
Key takeaways
- Unlike the outlook for hotel demand, hotel average daily rate expectations are less affected by concerns over labor and supply-chain challenges or recession fears;
- In STR's survey, more than 60% of respondents anticipate at least 1% to 2% growth in hotel rates year over year for the first quarter of 2024; and nearly a third of respondents put their predictions at 3% to 4% growth or higher;
- By the end of 2024, the proportion swells to 70% of experts predicting rate growth.
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