American vacationers can expect to pay higher prices this summer
The lifted restrictions encourage more Americans to get out and travel, but that can come with a higher price tag. CNN reported that hotel room prices rose 44% at the end of June from the previous year, based on data from hotel research firm STR. According to the consumer price index, they were 24% higher in May than in the same month last year.
However, prices are still lower than they were in the summer of 2019, before travel demand almost stopped at the start of the pandemic. “Most of what people see in price inflation is due to how cheap things were last year,” said Adam Sacks, president of Tourism Economics, as reported by CNN.
Citing data from STR, CNN noted that the national average for US hotel rates during the week ending June 26 was back to 99.5% of what it was the same week in 2019. Two weeks earlier, they were only 93%. In places that rely on business travel like New York, Chicago, and Washington, prices are still below 2019 levels.
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As for popular vacation destinations such as Orlando and Miami, prices rose 6% and 48% respectively in the week ending June 26 compared to the same period two years ago, a added CNN.
For Americans traveling by car, things are no better. Gas prices are also rising. The average price of a gallon of gasoline has risen to $ 3.13, from $ 3.05 a month ago, reports The New York Times. AAA said on Tuesday that consumers can expect another price increase of between 10 and 20 cents per gallon through the end of August.
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According to the May Consumer Price Index and noted by CNN, rental car prices are also up 110% from a year ago and are still 70% above pre-pandemic levels. . Car rental companies have sold about a third of their vehicles to survive the economic downturn. Purchasing replacement vehicles has been a challenge due to the global chip shortage. CNN added that airlines are also cutting flights to keep pace with staff shortages, which is not helping lower prices.
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This article originally appeared on GOBankingRates.com: American vacationers can expect to pay higher prices this summer