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Hotels

Why Inflation and Rising Wages Could Be Good News for Hotels

Deanna Ting

Photo Credit: As wages increase, more consumers will be able to travel and help offset any increased costs from inflation and labor for hotels, a new paper argues.  Andaz West Hollywood / Hyatt Hotels & Resorts / John Russo Photography

Skift Take

The ability to change hotel room rates will give hoteliers an edge in making sure they stay profitable, even if labor costs rise, and even if we might be headed for another economic downturn as some financial analysts suspect.

Where we are in the financial cycle, and the rise of labor costs, are two things weighing quite heavily on the minds of hoteliers these days. A new report from Cornell University's Center for Hospitality Research, however, suggests increasing inflation rates and labor wages may, in fact, be a good thing for hotels. The report, "Hotel Profit Implications from Rising Wages and Inflation in the U.S.," paints a much rosier picture for the U.S. hotel business than most hospitality executives and hotel owners might anticipate in the near term. There's valid reason for hoteliers' concerns about labor costs and rising inflation: In

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