When the Covid pandemic first hit in early 2020, more than 142 countries instituted complete or partial border closures, with 91% of the world’s population restricted from travel in March 2020, according to the Pew Research Center.
But now, as travel has resumed faster than expected following an accelerated vaccination roll-out in high-income countries, hotels worldwide can’t keep up with the pent-up demand amidst labor shortages, causing room prices to skyrocket.
The UK Buy Now Pay Later (BNPL) platform and partner travel agent Butter found that hotel room rates increased by 184% between October 2020 and October 2021, per Travel Daily Media. And yet demand for hotel stays in New York City rallied by 361%, causing a 28% price increase across the city. Meanwhile, in Europe, Rome and Lisbon experienced room price increases of 23% and 20%, respectively.
While price increases are partly due to the sudden surge in travel demand, the lack of supply in guestrooms and staffing add to the problem, experts told Insider…..ReadMore
