The American hotel industry is one of the most highly valued sectors in the United States, but there’s growing concern about the company’s price-gouging practices, according to analysts.
The Hotel Association of America said Tuesday it expects the U.S. hotel industry to post a loss of $6.5 billion in 2021, a loss that includes an estimated $2.9 billion in losses in the hospitality industry.
The industry has grown by an average of 10% annually since 2015, according the group.
While there is widespread sentiment that Amazon will continue to gouge customers, the company is expected to maintain a more moderate pricing policy in 2021.
It has said it will increase its profit margin in 2021 to between 3% and 4%.
The average cost of a hotel room in the U!
is now $3,400, according a recent study by real estate brokerage Reis Capital Markets.
However, many hotel operators said they’re not comfortable paying that much more.
The International Hotel Association said Tuesday that a typical U.s. hotel room costs $3.80, and the average cost in Europe is around $3 per night.
The group said that a 20% markup could mean the average U.?s hotel room could cost as much as $13,500.
In an interview with CNBC, the head of the American Hotel Association, Tom Coggin, said that while the industry is facing challenges, it has not given up on the future.
The hotel industry, he said, has grown from a small, regional hotel industry in the 1970s to the largest hotel chain in the world.