Friday, 24 July 2015
Travel costs: US up, Canada (mostly) down
The cost of holidays in America has risen sharply this year. For starters the £ is currently worth about 8% less against the $. And new research shows hotel prices have jumped in many cities. They were up by 5% overall in June, compared with the same month last summer. And some destinations saw rises of over 10%. The figures, from research specialists STR, show average daily rates in Seattle rose by 16.3%, Philadelphia by 15.7% and Boston by 10.2%. Among the exceptions was New York, where the rise was a barely perceptible 0.8%. Hotel rates are dictated by a combination of demand and availability. The recovery of the US economy has clearly stimulated leisure and business travel. The number of new hotel rooms being added in New York has been rising at a ate above the US average. Hotels filled 2% more rooms. The story is markedly different north of the border, where average daily rates are up around 6% year on year overall but the £ is about 7% stronger against the dollar. However there’s a sharp difference between hotel performance between provinces. If you’re a frequent visitor to British Columbia, for example, you may notice a real price increase over last summer, even when sterling’s strength has been taken into account.