U.S. Hotel Industry Gears Up For Strong Summer Season

Hotels in the United States are expected to see a record-breaking summer season, thanks to low gas prices and low room rates.

The number of rooms sold will increase by about 2% this year compared to last, according to summer forecast figures from travel research firm STR.

Despite the increase, hoteliers are not expected to raise room rates. STR analysts predict low rates “will have a small, positive impact on employment and corporate profit numbers. With that growth should be the desire for the American public to travel and for managers to send their people on the road.”

Another factor driving travel is low oil prices. At the lowest level in 11 years, the national average price for a gallon of gas is $2.26, 45 cents less than last year.

Major markets like Chicago, Los Angeles, and Las Vegas are expected to get additional business from international guests, like Europeans traveling abroad because of terror threats at home.

Industry revenues and profits have also reached record highs. STR’s 25th annual HOST Almanac indicates U.S. hotel industry revenue hit $189 billion in 2015, up nearly $14 billion from 2014. STR predicts that while revenue and profit growth will slow, they will still increase over the next few years.