Rising hotel bookings and increasing room rates across the U.S. point to a strong travel market and resilient economy, a travel industry executive says.

A report released earlier this month found hotel performance nationwide continued to outpace last year’s growth in early May, with average daily rates rising 1.7 percent.

“We’re seeing robust, year-over-year demand for more than five years now,” HotelPlanner CEO Tim Hentschel told NewsNation.

Hentschel said prices are climbing in part because hotel construction is not keeping pace with demand.

“It says a lot about the strength of the economy that rates have been able to increase, yet year over year, we’re still hitting record highs,” he added.

The cost of hotels, motels and other lodging has increased 4.3 percent, according to the U.S. Bureau of Labor Statistics.

“As long as we have a strong GDP and people have disposable income, more people will travel and room rates will continue to rise,” Hentschel said.

Short stays, strong demand reshape US hotel market

Another factor driving demand is a shift toward shorter stays among North American travelers.

Searches for one-night hotel stays have increased over the past three years, according to Hospitality Net.

“Travelers, especially in North America, appear to be shifting to a more flexible approach, likely driven by changing demographic, economic and technological conditions,” the report said.

At the same time, searches for longer stays have declined, dropping about 10 percent from 2023 to 2025, according to the site. (Source: The Hill)

Story Date: May 26, 2026