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Facing Up to the New Reality — Escalating Luxe Hotel Rates

Facing Up to the New Reality — Escalating Luxe Hotel Rates

Old Nov 2, 2023, 11:17 am
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Facing Up to the New Reality — Escalating Luxe Hotel Rates

We’ve (well, some of us) have been grumbling about the relatively recent escalation in luxe hotel rates for a while, since pandemic times. Here’s a thread to centralize those comments and reactions, prefaced with this article from The Telegraph:

The Ł1,000-a-night hotel is here to stay – this is how they justify the absurd prices

The Telegraph, 1 Nov 2023
Starting rates at London's new Raffles and Peninsula hotels mean the capital is following in the footsteps of Paris

https://archive.ph/KSQLo

The world's Ł1000-a-night hotels:

The Peninsula London

Price per night: Ł1,100

Aman New York

Price per night: Ł3,176

Hôtel de Crillon, Paris

Price per night: Ł1,381

Raffles London at the OWO

Price per night: Ł1,300

Bulgari Hotel Paris

Price per night: Ł1,319

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Old Nov 2, 2023, 12:45 pm
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these prices are just insane.
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Old Nov 2, 2023, 12:53 pm
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I don’t have an issue (much) with paying well over $1K per night but I almost always book a suite, never entry level, so the rate escalation does have a deleterious effect on my travel expectations.
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Old Nov 2, 2023, 1:25 pm
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Yes, I too have noticed a sharp spike in luxury hotel rates--much more so than with mid-range properties. Belmond Maroma, in Mexico, used to be around $400 per night; now it's around $2000 per night. I stayed at the Carlyle in NYC pre-pandemic for about $600 per night; now it's around $1400. I also had reservations at the Faena in 2020 that I had to cancel due to the pandemic; the rate then was around $500 per night, and now it's just over $1000.
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Old Nov 2, 2023, 1:44 pm
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Most of us in this forum are used to paying for quality but the new reality is nickel and diming, cutbacks and just pure greed on the part of many properties.

Last edited by Aventine; Nov 2, 2023 at 1:54 pm
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Old Nov 2, 2023, 3:15 pm
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Originally Posted by KatW
I don’t have an issue (much) with paying well over $1K per night but I almost always book a suite, never entry level, so the rate escalation does have a deleterious effect on my travel expectations.
I also regularly book a suite and €1000 (or even pounds) has been relatively normal for a long time, but is now almost cheap. In 2019, for example, I stayed in a suite at the Astir Palace and still paid three figures. I thought it was expensive for what was on offer. Today you'd be laughed at.
I've decided to cut back next year. Whether I can do it is another question. But it's perverse what you spend on travelling. When I think of a 16-night holiday and nothing under €2,000 (I'd already limited myself in some cases!), it's actually crazy. In Italy, I've now paid almost €1000 a night in a "decent" hotel. The Intercontinental Malta charges at least four-figure rates for a proper suite, something reasonable costs €2000. I once stayed there in 2008. A lot may have changed since then and the suites didn't even exist back then, but I don't remember it being particularly luxurious. And I had different expectations in 2008 than I do today.
So, enough grumbling. I have to write something about Villa Feltrenelli in my trip report. At €2,200.00, my suite was almost a bargain compared to many of the others I saw.
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Old Nov 2, 2023, 3:52 pm
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This is part of the reason that I’ve been focusing on Asia a lot recently. Rates are still a lot higher than pre-pandemic, but a lot of great hotels can still be had for $500-700 a night (not for suites though).

As for what’s in store for the future, Hawaii seems to be coming down some, so I’m a bit hopeful that the rest of the world follows suit with more realistic prices soon.
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Old Nov 2, 2023, 4:24 pm
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Originally Posted by United747
As for what’s in store for the future, Hawaii seems to be coming down some, so I’m a bit hopeful that the rest of the world follows suit with more realistic prices soon.
Hope it for a while. But here is another example. Stayed last month at Il Pellicano (absolute low season, 2 weeks before closing), booked it last year in August. OK, booked Suite Argentario which is their top-suite. Price was 2184 € per night. When I had a look later on the days before and after it was around 4.000,00 €. At least next year same time it's "only" 3000,00. So prices go down
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Old Nov 2, 2023, 5:10 pm
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Hotel rates hit different for the middle class as well. What used to be $300 a night is now $550 or more. Adds $1750 or more to a trip, and its just not worth it.

We end up staying in serviced apartments for less than a hotel, with more space. You lack in service, but overall its much better.
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Old Nov 2, 2023, 5:29 pm
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Some of it is inflation, lots of it is just demand ("revenge travel"). When I talk to GMs, lots of them are telling me they are selling less rooms at higher rates, which ends up working better because of staff shortages. So they'd rather focus on less volume at higher revenue.

I think some of it will come down eventually, but not to pre-pandemic levels.

Looking at rates in Paris and Dubai... haha!
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Last edited by scented; Nov 2, 2023 at 5:43 pm
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Old Nov 2, 2023, 5:41 pm
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Originally Posted by scented
Some of it is inflation, lots of it is just demand ("revenge travel"). When I talk to GMs, lots of them are telling me they are selling less rooms for higher rates, which ends up working better because of staff shortages. So they'd rather focus on less volume at higher revenue.

I think some of it will come down eventually, but not to pre-pandemic levels.

Looking at rates in Paris and Dubai... haha!
I’m in Dubai next week just for a night, and actually did “laugh out loud” at what some places are asking.
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Old Nov 2, 2023, 5:45 pm
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Originally Posted by United747
I’m in Dubai next week just for a night, and actually did “laugh out loud” at what some places are asking.
I'll gladly wait until they come to their senses. Too many other exciting destinations, plus looking at IQ Air for Dubai these days -- I'd rather not spend 3,000 USD per night and breathe that air for a week...
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Old Nov 2, 2023, 5:52 pm
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There are yet good deals to be had. I just booked five nights in a master pool suite at Casa Que Canta for $500/nt. I didn’t intend to but the combination of outstanding rate and a non-stop flight home overcame my budget sense.
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Old Nov 2, 2023, 5:57 pm
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This is not surprising when in the same location (city/metro center) of these luxury hotels, even mid-tier hotels are often seeing $400 nightly rates.

I was reliably told people regularly staying in these properties money is never an issue. Enjoy!
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Old Nov 2, 2023, 6:02 pm
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Originally Posted by KatW
There are yet good deals to be had. I just booked five nights in a master pool suite at Casa Que Canta for $500/nt. I didn’t intend to but the combination of outstanding rate and a non-stop flight home overcame my budget sense.
Agree, even today you can find good rates. My aim is to organise my trips accordingly next year. There are enough interesting destinations and I plan to travel wherever I can find a good deal.
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