If you are traveling in the coming year expect to see costs go up. The combination of a strong economy and inflationary pressures will push the cost of travel up in every facet.
Hotels will see an increase over the rate of inflation but of all the major categories will go up the least in terms of year over year increases. As a matter of fact, the rise in hotel rates will be the lowest since 2003.
Business travelers continue to show an affinity for upscale, luxury hotels like Ritz-Carlton and Four Seasons. And a large number of road warriors continue to find their way to midpriced chains like Hampton Inn and Holiday Inn Express.
In response, proprietors of those two kinds of hotel properties can be expected to raise their prices more than any other hotel types in 2008, according to PKF Hospitality Research.
PKF predicts the average room rate in the U.S. will go up about 5.3 percent, to just over $109 a night. But rates in the luxury segment will rise 6.6 percent to an average of nearly $309 a night. Midmarket hotels lacking formal food and beverage operations are forecast to bump up their prices 6 percent to $92 a night.
The American Express Business Travel Forecast paints a similar picture for hotel price increases next year: up 4 percent to 6 percent in the midmarket segment; up 5 percent to 7 percent in the higher-priced segments of the market. via IndyStar.com.