Excerpt from Bloomberg
Tighter budgets, busy airports and soaring prices are seeing a more frugal tourist return
Even high-end travelers are pulling back on their vacation spending.
They want to pay no more than $500 a night for a hotel, and they aren’t interested in paying extra for greener or fancier options, according to the latest MLIV Pulse survey with 465 respondents, a little more than half from the US and Canada and a quarter from Europe.
This may be a reflection of diminishing consumer confidence or complaints that inflated pricing hasn’t been accompanied by a proportionate increase in service quality.
The results come during what should be one of the busiest periods for travel booking. March is when most people start to finalize summer plans and early birds get a jump on yearend holiday reservations.
Some 69% of poll participants said their maximum budget per hotel room night was $500, while 24% were willing to spend up to $1,000. Still, 5% set their limit at $2,000, and 2% continue to entertain spending $3,000 per night or more. Respondents include traders, portfolio managers, senior managers and retail investors.
Although $500 to $1,000 per night for a room might sound high, that range eliminates the fanciest hotels in most major markets, let alone suites or larger rooms at mid-tier properties.
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