Hotel prices are expected to increase next year in Toronto

Travelers planning to visit Toronto next year may face higher prices. It is predicted that the rates are expected to increase by approximately seven percent. This forecast is based on an analysis of price trends in 80 cities worldwide, and an estimated 6.7 percent increase in prices is expected for Toronto next year. In comparison, Vancouver is expected to experience a nine percent surge in hotel prices.
Demand for accommodations in Toronto has increased by nearly 18 percent since August 2023 compared to the previous year. Furthermore, hotel rates have risen by almost six percent compared to last year, reaching 68 percent.
Andrew Weir, the Executive Vice President of Destination Toronto, told CTV News, "2023 is a strong year for leisure travel, especially for international visitors, as the city has attracted tourists with its international music and theater scene. However, the number of travelers coming from abroad has not yet reached pre-pandemic levels."
Sara Angell, the President and CEO of the Greater Toronto Hotel Association (GTHA), echoed Weir's sentiments, stating that the number of travelers is still 10 to 15 percent lower than pre-pandemic levels. Angell also added that the next three years might also see a decrease in the number of travelers. Therefore, the years 2024, 2025, and 2026 are not considered as good years for the Toronto market as 2023.
According to experts, the average nightly rate in downtown Toronto hotels for the entire year of 2023 is projected to be $322, indicating a 10 to 11 percent increase compared to 2022.
Just as the Tim Hortons team has raised coffee prices and airlines have increased flight fares, hotel room prices are also rising. The cost of their labor and all their input costs has become more expensive, and as a result, hotel room rates are on the rise.

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