Declining Economy Hotel Performance During High Inflation Isn’t a New Trend

In the U.S., the impact of higher inflation is cutting into the travel budgets of lower-income households, negatively impacting hotel performance in economy-class hotels. Demand, or occupied hotel rooms, in the economy class declined by 4.8% year-to-date as of June, after inflation hit the highest levels since the 1980s. But this isn't the first time this has happened.