Airfare and rental cars at highs. Hotels to follow?

Airfares hit record highs in 2012. Car rental rates have steadily climbed despite high gas prices. Yet, hotels in September 2012 have an average daily rate at $105.10 in the U.S. and still lag slightly behind their September 2008 peak rates of $107.71.

2007 Q3 saw a peak in airline passenger travel with 203 million flyers. Four years later in 2011 Q3 the airline passenger level is 4% lower than 2007 peak. Average airfares in 2012 Q1 were the highest in eight years.

Car rental revenues in 2011 were the highest in 11 years and increased 8.8% over 2010 rates. There were 1.8 million rental cars in service in the US in 2011. Monthly average revenue per car was $1,060.

The point of the HotelNewsNow article with all this comparative data is to imply hotels should be able to increase room rates and get more money from consumers who obviously are willing to pay more for airfare and car rentals.

Sounds like a leisure traveler squeeze to me.

In 2012 I watched rates go through the ceiling in San Francisco, New York, Miami, Hawaii and I have to think that with corporate profits going up and middle class income going down, many leisure travelers are still facing the fiscal cliff of reduced vacation affordability.

That is why I think it is even more important as we move into 2013 to know where the deals are and how to save money on the key travel vacation components of hotels, airfare and rental cars.

This TravelPulse article indicates Europe may be where the hotel travel bargains are found in 2013.


About Ric Garrido

Ric Garrido of Monterey, California started Loyalty Traveler in 2006 for traveler education on hotel and air travel, primarily using frequent flyer and frequent guest loyalty programs for bargain travel. Loyalty Traveler joined in 2008.

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  1. All indicators are showing a grim future for business and especially leisure travelers.The uptick in travel especially in key markets combined with the lack of new hotels/rooms coming on to the market.
    Banks have been sitting on the sidelines not wanting to loan money to new projects.When demand outstrips supply its a no brainer.I expect high prices and more dismal promotions going forward

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