NEW YORK - Lower-income Americans dialed back their travel spending in April as reduced savings, higher credit card delinquencies, and inflation weighed on household budgets, according to data from commercial real estate analytics firm CoStar.
"The increased cost of living is affecting lower-to-middle income households and their ability to travel, thus lessening demand for hotels in the lower-price tier," Amanda Hite, STR president, said in a statement. CoStar downgraded its previous 2024 forecasts for the industry, now expecting average daily room rates will rise 2.1% this year compared to its previous forecast of 3.1%. In 2023, room rates rose 4.3%.
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