Traveling? Expect Lower-Quality, Higher-Priced Hotel Rooms

By: James Flippin · November 15, 2022 · Reading Time: 3 minutes

High Prices, Low Quality

If you’re traveling in the upcoming months, mentally prepare for your hotel room to be behind on maintenance – even if the price doesn’t reflect it.

Industry insiders estimate that prices for hotel rooms will remain higher-than-normal, even though the busy summer travel season has subsided. For the fourth quarter, it’s predicted that the average price for a hotel room will exceed $146, down just dollars from $153 in the high-volume third quarter.

Nevertheless, despite these high prices, many guests are complaining about less-than-ideal accommodations.

COVID-19 Fallout

Fallout from the COVID-19 pandemic is still being felt far and wide.

For the hotel industry, the pandemic led to a dramatic decrease in bookings. Most hotels redirected cash to necessities like leases, bills, and payroll during this time. This means that renovations and general maintenance got put on the back burner.

However, even with COVID restrictions lifted, challenges for the industry remain. Labor shortages have made plumbing, electrical, and HVAC repairs more expensive. Additionally, supply chain issues overseas make it more difficult to replace furniture or carpeting.

What Should I Do?

Right now, the hotel industry as a whole is scrambling to renovate and make up for the time lost during the pandemic.

In the short term, you should expect that there might be a few issues at the next hotel you book. If you’re planning for a big event, like a wedding, consider visiting the hotel in person, instead of trusting online photos. Or, you can lean on accommodations through services like Airbnb (ABNB), which tend to require less upkeep and may be in better shape.

Thankfully, over the long term, hotel executives expect hotel conditions to improve. Hotels, like many of their guests, just need some time to catch up.

Even if your lodging doesn’t meet your expectations, remember not to target your frustrations toward the likely-overworked hotel staff. That’s what managers – and/or bad Yelp (YELP) reviews – are for.

Looking for more stories like this? Check out On the Money — SoFi’s one-stop-shop for news, trends, and tips!

Check it out

Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision. 
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content. 
Communication of SoFi Wealth LLC an SEC Registered Investment Advisor
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners. 

TLS 1.2 Encrypted
Equal Housing Lender