Miami Hotel Prices Have Increased By More Than 50%

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Last Updated 2 years ago

Traveling may be much more expensive than it once was, taking into account inflation and other challenges the hospitality sector is facing, but some destinations were hit harder than others. Out of the summer hotspots surveyed in the United States, Miami has experienced the most dramatic prices hikes, with hotels now costing 56% more than they did in 2019.

While we have covered the ongoing aviation crisis extensively, the Covid fallout is affecting not only flights, but the wider travel industry as a whole. Within the United States, hotel prices have soared across a number of cities, with Miami being only one example of that. Unfortunately, this is an aggravating trend and prices could go even higher over summer:

Miami Is Now The Most Expensive Out Of 7 Summer Destinations

Proving the long-term effects of Covid on the travel industry are yet to be fully understood, Miami has seen hotel room rates surge over the last three years. As less people traveled and hospitality leaders were forced to scale back operations, Florida's leading tourist destination saw hotel overnight prices increase by 55.6%.

This means that, for the first five months of 2022, tourists in Miami were expected to pay USD 369.51 a night, as opposed to $237.41 for the same period in 2019 – prior to Covid being declared a pandemic. The research, which was carried out by Bloomberg with the assistance of Google's data scientists, looked at hotel rates in seven popular summer markets.

Surprisingly, Miami came out ahead of six others on the list. It even beat the traditional luxury retreat of The Hamptons, now taking the second place with a 51% rise in hotel fares. Rounding out the top three, the picturesque island of Nantucket in Massachusetts, where costlier retreats are usually found, has seen another 45.7% increase in prices.

In the United States as a whole, hotels are now 33% more expensive, according to hotel market data provider STR. More worryingly, these U.S.-wide estimates are based on April and May national averages only, and do not take into account summer fares, that are usually much higher than those seen in the low season.

Comparatively, Miami's hotel rates over summer are actually not drastically higher than other cities, mainly because travelers do not necessarily prioritize Florida in the summer, saving it instead for the colder winter months. Nevertheless, the coastal metropolis remains one of the most expensive destinations for tourists in the U.S.

Even though Miami-bound travelers are likely to have saved up ahead of visiting and are probably looking for some luxury anyway, mid-July rates can easily reach a crippling $534 per night at hotels like Faena. Over at the Betsy, rooms can cost as much as $417, and while there may be more affordable options on AirBnB, those are not budget-friendly either.

What Is Causing The Fare Surge?

Last year, Alex Miller, founder and CEO of Upgraded Points, already predicted hotels would get more expensive this season – a ‘lot more', in his own wording. According to Miller, now that gas prices are up, labor shortages are worsening and ‘demand is through the roof', fares are bound to rise ‘significantly'.

Miller detailed hotels are seeing varying percentage changes, with leisure destinations like Miami being hit with the highest increases. These can be as low as ‘just a couple percentage points to well over 100%'. Inevitably, the recent staffing constraints reported across various sectors will only add to these prohibitive costs.

‘We're seeing a higher demand for travel now, combined with some limited capacity', Miller added, confirming the collective redundancy seen during Covid resulted in a lack of housekeepers in hotels. Coupled with inflation, directly impacting toiletries, food, and other items hotels tend to order, costs could shoot up further.

Here's How You Could Save Up Some More Traveling This Summer

Sounds discouraging? There are always some tips you could use to save up as much as possible when going on a vacation, such as using this new travel sheet cheat to find cheaper flights, booking accommodation early before prices skyrocket during the high season, or calculating gas prices in advance before hitting the road.

There may not be a magical solution to macro-economic factors, especially in a year as challenging as 2022, where other viruses have emerged and a war is being waged in Europe, but every penny counts. Using these tools, you can maximize your chances of getting better deals when booking a trip to Miami and avoiding unnecessary expenses.

For more travel updates, make sure you follow all the latest news here.

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