Effects of currency exchange on hotel performance

Jan Freitag, SVP of lodging insights for HNN’s parent company STR, has presented some new research looking at the impact of currency fluctuations on room rates in gateway markets. Freitag notes there is currently room for hoteliers to use a weakening U.S. dollar to their advantage in these markets by presenting higher rates on international booking platforms, which would translate to higher ADR in the U.S. while still being more affordable for international travelers based on the strength of their local currencies.

“Smart pricing, together with a concerted effort from the U.S. Travel Association to generate travel intent, should help stimulate room demand from foreigners that will then aid the industry overall,” Freitag writes.

In related news, the U.S. dollar continues to fall relative to international currencies today after a brief rally, according to The Wall Street Journal.