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Travel Tip: Hotel Rates are (Probably) Going Up

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hotel-signListen up, travelers. Hotel rates may be going up this year, so pay attention before you book.

According to the research firm STR, U.S. hotels actually hit a record in 2014. The average daily rate was about $115 a night (the highest ever recorded), up 4.6 percent from the previous year.

PKF Hospitality Research predicts rates will skyrocket another 5.4 percent a year, on average, through 2017.

There’s a good reason for this: hotel occupancy is going up…and up.

According to Pricewaterhouse Coopers, now known as PwC, hotel occupancy levels are expected to rise to nearly 65 percent, which is the highest since 1995.

That means the law of supply and demand kicks in. As demand for leisure, business, and convention travel increases, hotels are in a position to command higher rates.

Now, this doesn’t mean you’re entirely out of luck.

The same rules of negotiation still apply, whether it’s getting a lower price in the off season, reducing rates for groups, or talking to a manager to waive fees on expensive add-ons like parking, breakfast, and Wi-Fi.

For more information, visit the Hotels & Accommodations and Money, Currency, & Credit Archives.

Keep reading for more travel tips.

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