Holiday travelers hit with higher hotel costs

I'm going to take a live to MSP International Airport, getting ready for the holiday travel rush. A new study found airfare prices have gone up 11% this year. But there at MSP, tracking even higher than the national average, going up 14%. This year. And it's not just the flight tickets that are getting more expensive. It's also the hotel room once you eventually land. Right. And with that, with the holidays coming up, we know new data is showing room rates are climbing. Olivia Nacalmi is live in Chicago this morning. And Olivia, we're asking why are hotels getting so expensive? Good morning to you. Good morning, Tom and Kelly. Well, it's getting more expensive to run the hotel. And when more More people want a room that can push prices even higher. CoStar says the cost of a hotel room went up more than 5% nationwide this September compared to last year. And when you're staying more than one night, it can add up fast. Hotel prices are certainly increasing nationwide. It's not necessarily meaning more profits for the hotels. It's really a result of higher costs. When you look at all the cost pressures facing typical Americans, whether at the grocery store or at the gas pump these days, hotels are facing the same pressures. Industry data shows hotel insurance costs have more than doubled since 2019, but what you pay also depends on when you go. Travel site Hopper found Thanksgiving hotel rates about the same as last year, while Christmas rates are already up 18%. At Freehand Chicago, the manager tells me the cost of a room is up 3 or 4% from last year, and he says it's driven mostly by demand. So we take a look to see what the demand is currently in the market. What's happening in the city, if there's any type of city-wide or special events. And I talked to NerdWallet who says demand is especially strong at luxury hotels. We're at this very interesting point where people who want the nice things in life, they are still paying up and hotels are able to charge higher prices for those things. But higher costs are keeping some travelers home. NerdWallet found 31% don't plan to spend on flights or hotels this holiday season. That's up from 22% last year. If you are still looking to book though, Though French tells me getting a A flexible reservation could help you save even if it costs a little bit more on the front end. If that room rate has dropped, which is not uncommon, then go ahead and cancel that reservation and rebook it at the lower price. And hey, before you book that hotel, check what else is happening in the city. A big concert, convention, or sporting event can really drive up room rates as well. Tom, Kelly. It's like that surge pricing we've become familiar with. All right, Olivia, thanks so much from Chicago. Appreciate it.