If you haven't already, it's probably time to reconsider your budgets for relocations and assignments happening across "peak season" which is now though end of September. I have already talked about how inflation is very much a global issue and costs for most everything are going up, including those benefits offered within a relocation or assignment package!
We also recently posted on how you should expect the prices on rental cars to increase, even as much as 100-200%. Rents are continuing to rise, housing costs are up, mortgages are up, airline tics have jumped up and lump sums are not going nearly as far as they did a year ago! It is very difficult to predict exactly how things will play out over 2022, but at this point, there is no doubt that the costs for supporting talent mobility will be higher this year than they were the past few years.
Well, if you had not added hotel and temp living costs to that list, you should now. TPG explains that you should prepare to pay A LOT for hotel stays in the U.S. As an example, average rates in Miami last month, for example, were $329.50, up from the $252.80 seen in 2019, according to STR. In Tampa, room rate averages climbed from $173.90 in 2019 to $211.35 this year. With leisure travel making a huge comeback, price increases will impact on the global mobility side of things.
Stay tuned as we'll be diving in deeper with a post next week on managing "peak season 2022".
“The U.S. overall leads the way. Especially room rates on the higher end, leisure is just gangbusters right now, as people are certainly finding out when they’re trying to book their spring break or their summer vacations or even their winter vacations. You better get going on those right now,” Patrick Scholes, managing director of lodging and leisure equity research at Truist Securities, said. “[Hotel executives will] certainly point to that, and then people will say they’re very encouraged by the pace of recovery for the business traveler.”