Inlfation, Gas Prices, & Increased Travel Expenses

[Dustin Sanders]

Has inflation, increased gas prices, and overall travel expenses impacted your bookings or future bookings?

[Joe Splitrock]

Inflation affects disposable income, which is what people use to take a vacation. If you have a choice between paying your housing bills, putting food on the table or going on vacation, you will prioritize the first two. 

Also keep in mind that COVID caused hotels to fall out of favor, because people didn't want to packed in with other people. That is starting to get back to normal. Hotels offer breakfast, convenient locations, house keeping, gym, pool and loyalty rewards. I like hotels because of flexible cancellation. Some STR offer this but some are very strict, even having me sign a contract. It can be pretty intense, especially if you think plans may change.

That all being said, inflation and gas has had minimal effect to date. Yes there are lots of people complaining about it, but it is only starting to have a real effect. Economy is strong and people are working, so people are getting by. If that changes, then you will see a real hit to the vacation market.