The FRED Blog recently discussed the large reductions in travel related to the COVID-19 pandemic. Today we expand that analysis to include a specific aspect of travel: hotel stays.
The graph above shows producer price index (PPI) data from the Bureau of Labor Statistics (BLS) that measure price changes from the perspective of the seller. Percent changes in prices from a year ago are shown for both stand-alone hotels (in gold) and hotels attached to casinos (in red).
Seller prices began dropping for stand-alone hotels in February, and the downturn has persisted through the summer: During peak season (June to August) prices were, on average, 17% lower than they were a year ago.
But hotels attached to casinos show an increase for most of this time period. This disparity reflects the different drivers of consumer demand for stays at these two different types of hotel. Moreover, it may reveal different levels of risk aversion during a pandemic among these consumers.
Learn more about COVID-19’s impact across industries from this Economic Synopses by Matthew Famiglietti, Fernando Leibovici, and Ana Maria Santacreu.
How this graph was created: Search for and select “Producer Price Index by Industry: Hotels (Excluding Casino Hotels) and Motels.” From the “Edit Graph” panel, use the “Add Line” tab to search for and select “Producer Price Index by Industry: Casino Hotels.” Use “Edit Line 1” to change “Units” to “Percent Change from Year Ago” and click “Copy to All” to apply this change to line 2. Use the “Format” tab to select “Graph type: Bars” and select colors to taste.
Suggested by Diego Mendez-Carbajo.