Economy Hotel Demand Slips As Lower Income Households Expect Their Future Expenses to Rise

Monthly demand for rooms at Economy hotels has been declining since April 2022. This stands in contrast to other hotel segments, where room demand started to recover in the late spring of 2021 and has continued its rise. One of the potential reasons for this decline is that consumers who make less money are worrying that their future expenses are rising quickly. This expectation might motivate them to reduce travel plans, find alternative accommodations with friends and family or dissuade them from traveling at all.