Avid traveler Lora Bowler is reducing her vacation spending. That doesn’t mean she’s skipping the resort.
The New Yorker said she spent more than expected in 2023, including on travel, and is now reining in her spending. She uses travel hacks and perks to cut some of the costs, and she’s one of a growing number of people using hotel day passes as a cheaper alternative to relaxation.
“It’s like a nice way to get away from it all and feel like you’re in a five-star hotel,” Bowler said, “but you can’t afford to stay there.”
Day passes at hotels and resorts give guests access to amenities without the cost of a room reservation. Bowler said she booked daybeds and poolside services and even found a pass that offered her a room where her husband could work from his laptop.
Hotels and third-party providers are making day passes more readily available to bridge the gap between travel-loving consumers and luxury fares.
According to CoStar, a global provider of real estate data, analysis and news, a typical luxury hotel room in the U.S. cost about $400 per night between January 1 and April 6. These rates are about 1% higher than the same period a year ago.
According to luxury travel company Virtuoso, luxury hotel room rates in July are expected to be 85% higher than the same month in 2019, pre-Covid.
“People are thinking about travel budgets again,” said Hayley Berg, senior economist at travel site Hopper. “They place more emphasis on holiday spending than on consumer goods.”
In a July 2023 survey conducted by Booking.com, more than 60% of respondents said their cost of living will determine their travel plans in 2024, while just over half said they would likely pay for accommodation upgrades.
According to a Booking.com press release about the survey, a majority of U.S. travelers said they would be willing to pay for day passes to enjoy the amenities of a five-star hotel without staying overnight. The survey included nearly 28,000 adults from 33 countries who said they were planning a trip in the next 12 to 24 months.
Consumers splurging on luxury trips after Covid restrictions were lifted have fueled the “revenge travel” trend, Berg said, driving up demand for lavish accommodation. Now, she said, that trend has “very much dried up” and many travelers are working on tighter budgets.
Berg said day passes “give people exactly what they want” and provide a separate revenue stream for hotels.
“Hotels get an additional revenue stream by providing exactly what they already have,” she said.
One of these hotels is the Virgin Hotels New York City in the Koreatown district of Manhattan. On May 8, the hotel opened its rooftop pool for the second time, with amenities available for day guests as well.
The sky-blue tiled pool flanked by black-and-white lounge chairs offers guests views of the Empire State Building and the city skyline.
Customers can reserve a lounge chair by the pool or upgrade to a cabana and invite up to four additional people. The cabana includes complimentary services and refreshments such as wine and fruit. Pool club day pass users can also get their own personalized server depending on their selection. A day pass for the pool club starts at $130.
“Everyone needs a little escape,” said Sarah Payton, the hotel’s director of partnerships and programming.
In May 2023, the hotel partnered with ResortPass, a website that offers day pass access to luxury hotels, resorts and spas, often at a discounted rate.
According to the company, ResortPass, which launched in 2016, has a 95% share of the day-guest market and has partnered with more than 1,300 luxury hotels, including Waldorf-Astoria, JW Marriott and Fontainebleau.
The day guest platform has served more than 3 million users and launched day pass access in more than 250 cities, with prices as low as $25.
“What we can really do is give people a more local way to get away without leaving,” said Michael Wolf, CEO of ResortPass. “I think it complements other types of travel and potentially acts as a replacement for them.”
The average ResortPass customer purchases all-day access for about $165, the company said. Customers who purchase day passes through ResortPass often splurge more on pool or other hotel amenities than overnight guests, Wolf said.
“Our guests spent an average of over $250 on the property, often significantly more,” he said.
Wolf said ResortPass is currently working on a membership-like program for customers who frequently use day passes. An announcement is expected later in 2024.
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2024-05-25 12:00:01
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