Hotel prices in Asia are increasing as post-pandemic travels continues to ramp up

One of the most difficult parts of planning any vacation is finding the perfect place to stay. Not only are location and amenities major things to consider, but making sure to find a good deal is probably number one on the list of “needs” for most. Unfortunately, for folks who are planning to vacation in Asia, this search just got harder.

CNBC reports that hotel rates are at an all-time high. Alan Watts, Hilton’s Asia-Pacific president, told the network that the high demand in travel since the end of the pandemic has increased hotel prices. In the last quarter of 2022, Hilton’s daily average rates increased 8% compared to 2019’s fourth quarter. Marriott and IHG’s prices increased 13% and the Hyatt’s rates increased 14%.

Travel is booming again in Asia Pacific, particularly in places where Chinese travelers are traversing. According to travel booking agency Traveloka, hotel rates across Southeast Asia have increased at least 10% since 2022. Locations frequently visited by Chinese travelers have gone up more than 45%.

“The most significant increase was recorded in Bali, Bangkok, Phuket and Singapore, with Bangkok topping the charts at over 70% and Singapore coming in at over 40%,” Joydeep Chakraborty, Traveloka’s chief strategy officer, told CNBC.

Hotel rates are increasing most for high-end, luxury hotels, according to Traveloka data. Chinese travelers have a higher interest in luxury hotels, as data shows that luxury hotel stays for Chinese travelers increased from 18% to 34% between 2022 and 2023. Granted, these increasing rates aren’t only limited to more luxurious options, but if you don’t mind staying somewhere more modest, that could potentially save you a couple hundred per night.

There may be a silver lining to these price hikes, though, as it is possible that they will be short-lived. According to Kayak, hotel prices in Asian countries are trending upward, but some of the highest rates are already starting to fall. Nightly rates dropped 36% in Bangkok from January to February and 33% in Singapore.

While an increase in rates is helping hotels make up for lack of tourism during the pandemic, this comes at a detriment to the finances of travelers.

“It should not be surprising to see a rise in luxury hotel prices following mainland China’s re-opening to international travel, given its role pre-pandemic as the biggest source of outbound tourist spending globally,” David Mann, chief economist at Mastercard Economics Institute, told CNBC, “Especially for economies reliant on tourism, such as Thailand.”

Only time will tell what the status of hotel rates in Asia will look like throughout the year, but until then, you might want to consider holding off on that baecation to Bali.

Roshae Hemmings is an arts and culture magazine journalist from St. Louis, MO. A graduate from the Missouri School of Journalism, Roshae has bylines in the Columbia Missourian, Vox Magazine and 5280 Magazine discussing topics ranging from pop culture, social justice and eat and drink. She is a foodie at heart and enjoys eating food as much as learning about the story behind it. When she’s not working on a story, Roshae enjoys cooking, watching and analyzing reality TV, and spending time with family and friends.

This story was originally published March 7, 2023 at 6:35 PM with the headline "Hotel prices in Asia are increasing as post-pandemic travels continues to ramp up."