CHARLOTTE, N.C. — According to the most recent Consumer Price Index (CPI) report from the Bureau of Labor Statistics, the numbers that show how inflation is impacting everyone has dropped earlier this week. Experts said it's a win and inflation is going down more than they expected. But while inflation is going down, prices of hotels and short-term rentals like AirBnBs are climbing.
Daniel Jacobs with TruLoan Mortgage said people in the industry think prices have finally turned the corner.
“The November 10th inflation data was very favorable," Jacobs said. "But the high prices in hotels actually kept inflation numbers higher."
TruLoan Mortgage cited data from Marriott and showed short-term lodging is up .8% month-over-month. Joseph Von Nessen, an economist at the University of South Carolina, said while it's pricier all around, some travelers in need of a place to stay are still willing and wanting to spend money.
"We have seen the pendulum swing to the purchase of services and away from the purchases of goods," Von Nessen said.
Jacobs added another reason for the high prices would confuse some people.
"Occupancy is down and owners are charging a little bit more to catch up for that lost revenue," Jacobs said.
That checks out in the Charlotte area. WCNC Charlotte called five hotels and they all said the same thing: they have a lot of empty rooms. Jacobs said don't delay the family vacation if you're scared of high prices.
"Typically with hotel rooms, when demand drops, prices go up and if demand drops again, prices will fall eventually," Jacobs said.
Contact Austin Walker at awalker@wcnc.com and follow him on Facebook, Twitter, and Instagram.
