Average daily rates for US hotels reached a record high of $179.30 during the week of Sept. 13–19, marking the highest nominal weekly rate ever recorded in the country. This surge in US hotel rates occurred alongside a 22.4% annual increase in airfares, signaling much higher costs for travelers than the 3.7% overall consumer inflation rate.

What is driving hotel costs?

Several factors contributed to the rise in room prices and revenue. According to CoStar data, revenue per available room (RevPAR) jumped 10.4% during the mid-September period. The industry has seen several catalysts for growth:

  • The FIFA World Cup and America 250 celebrations boosted leisure demand.
  • A resurgence in business travel increased mid-week occupancy.
  • Major conventions, such as the International Manufacturing Technology Show in Chicago, drove demand.
  • Seasonal timing, including the Jewish high holidays, influenced mid-September figures.

Changing industry forecasts

The scale of this growth has surprised many analysts. In February, the STR/Tourism Economics forecast predicted only 0.6% RevPAR growth for 2026, following a 2025 where the industry saw its first decline outside of a recession. However, CoStar and Tourism Economics repeatedly raised their estimates throughout the year as demand strengthened.

By August, the full-year RevPAR estimate was lifted to 4.4%. STR President Amanda Hite noted that the industry sold a record number of room nights in the first half of the year, which was 11.4 million more than in 2025. This surge resulted in room revenue rising by more than $5.4 billion.

How much are flights increasing?

Air travel is becoming significantly more expensive for domestic passengers. Federal inflation data shows that airline fares climbed 22.4% year-over-year through September 2026. This increase is partly attributed to rising fuel expenses, with Delta Air Lines reporting that its adjusted fuel price reached $3.61 per gallon, a 60% annual increase.

Looking ahead to the holiday season, travel platform Hopper provides the following domestic round-trip estimates:

  • Thanksgiving: $402 (up 31% from 2025)
  • Christmas: $452 (up 23% from 2025)

FAQ

What was the record hotel rate?

The average daily rate reached $179.30 for the week of Sept. 13–19.

Are airfares rising faster than inflation?

Yes, airfares rose 22.4% annually while overall consumer inflation stood at 3.7%.