Skift Daily Briefing

Why Surging Hotel Rates Isn’t Price Gauging


Listen Later

Episode Notes

Travelers will likely notice that hotel room rates are up this summer travel season compared to last year, leading to charges that hotel owners are raising prices to take advantage of pent-up vacation demand. However, Senior Research Analyst Seth Borko argues that surging rates aren’t a case of price gouging.

Borko acknowledges that the average price of a U.S. hotel room rose 13 percent in May from the same month last year. But he reports that jump doesn’t account for inflation, adding the price of everything rose during the pandemic. Hotel owners in particular have seen the cost of items such fuel, food and laundry supplies increase. Borko notes inflation data suggests that most hotel owners are raising rates to keep pace with their surging costs. 

He also writes that if hotel owners aren’t making more profits from the increased rates, that’s not price gouging.  

Next, more travel brands are turning to artificial intelligence tools to help users make bookings, with many companies believing the growing technology will help them operate more efficiently. But Travel Technology Reporter Justin Dawes writes not all of those booking tools will be successful.

Dawes notes most companies want a virtual travel agent that can make bookings based on customers’ highly personalized preferences. Vacation rental listing platform HomeToGo is one company planning to release an AI booking tool. But Dawes writes it’s uncertain how small companies with limited data can compete against larger, wealthier rivals. He adds that the platforms that succeed will likely need to solve a unique problem or create a recognizable brand, feats many companies won’t be able to do. 

Finally, Australia’s flag carrier Qantas has resumed flights to New York City for the first time in more than three years. It’s another sign of airlines returning to normal after the pandemic, writes Jay Shabat, senior analyst at Airline Weekly, a Skift publication. 

Shabat reports that Qantas is initially flying to JFK Airport from Australia via Auckland, New Zealand three times a week. The company will increase that number up to four in October, a month that coincides with the start of Australia and New Zealand’s peak summer tourist season. Qantas views Auckland stopover as an interim measure until it receives a new set of ultra-long-range Airbus jets, possibly in 2025.

CEO Alan Joyce said the company has seen enormous demand for the flights since they went on sale last year. 

...more
View all episodesView all episodes
Download on the App Store

Skift Daily BriefingBy Skift

  • 3.9
  • 3.9
  • 3.9
  • 3.9
  • 3.9

3.9

35 ratings


More shows like Skift Daily Briefing

View all
TED Radio Hour by NPR

TED Radio Hour

21,954 Listeners

NPR News Now by NPR

NPR News Now

14,681 Listeners

WSJ Your Money Briefing by The Wall Street Journal

WSJ Your Money Briefing

1,713 Listeners

WSJ What’s News by The Wall Street Journal

WSJ What’s News

4,420 Listeners

Travel with Amateur Traveler Podcast by Chris Christensen

Travel with Amateur Traveler Podcast

43 Listeners

The Skift Travel Podcast by Skift

The Skift Travel Podcast

40 Listeners

WSJ Tech News Briefing by The Wall Street Journal

WSJ Tech News Briefing

1,649 Listeners

Airline Weekly Lounge by Skift

Airline Weekly Lounge

138 Listeners

Make Me Smart by Marketplace

Make Me Smart

5,480 Listeners

WSJ Minute Briefing by The Wall Street Journal

WSJ Minute Briefing

686 Listeners

Slick Talk: The Hospitality Podcast by Skift

Slick Talk: The Hospitality Podcast

71 Listeners

Life Kit: Parenting by NPR

Life Kit: Parenting

635 Listeners

Life Kit by NPR

Life Kit

4,807 Listeners

The Journal. by The Wall Street Journal & Spotify Studios

The Journal.

6,097 Listeners

Airlines Confidential Podcast by Scott McCartney

Airlines Confidential Podcast

140 Listeners

Good Morning Hospitality by Skift

Good Morning Hospitality

11 Listeners

The Air Show by Shayr Media

The Air Show

222 Listeners

Suite Success: Masters of Hospitality by Skift

Suite Success: Masters of Hospitality

77 Listeners

Daily Departure by Skift

Daily Departure

0 Listeners

GreenShift by Skift

GreenShift

0 Listeners