Avid traveler Laura Bowler is cutting back on her holiday spending. That doesn’t mean she’ll miss the resort.
The New Yorker said she spent more than she expected in 2023, including on travel, and is now in control of her spending. She uses travel hacks and perks to cut some of the costs, and she is among a growing number of people turning to hotel day passes as a cheaper holiday option.
“It’s a great way to get away and feel like you’re in a five-star hotel,” Bowler said, “but you can’t afford to stay.”
Day passes at hotels and resorts offer guests access to amenities without the cost of booking a room. Bowler said she reserved lounge chairs and pool services and even found a pass that offered a room where her husband could work from his laptop.
Hotels and third-party partners are making day passes more affordable to help bridge the gap between travel-focused consumers and luxury prices.
A typical luxury hotel room in the U.S. cost about $400 per night from Jan. 1 to April 6, according to CoStar, a global provider of real estate data, analytics and news. These figures are about 1% higher than the same period a year ago.
Luxury hotel room rates in July are expected to be 85% higher than the same month in 2019, before the Covid pandemic, according to luxury travel company Virtuoso.
“People are thinking about travel budgets again,” said Hayley Berg, lead economist at travel website Hopper. “They are prioritizing holiday spending over consumer goods.”
IN survey carried out in July 2023 Booking.comMore than 60% of respondents said the cost of living would determine their travel plans in 2024, and just over half said they would likely pay for an upgrade.
According to a Booking.com press release about the survey, most U.S. travelers said they would pay for day passes to enjoy the amenities of a five-star hotel without staying there. The survey included nearly 28,000 adults from 33 countries who said they planned to travel over the next 12 to 24 months.
Consumers spending money on travel as Covid restrictions eased fueled the “revenge travel” trend, boosting demand for luxury accommodations, Berg said. Now, she says, the trend has “very much played itself out” and many travelers are working on tighter budgets.
Berg said day passes “give people exactly what they want” and provide a separate source of revenue for hotels.
“Hotels generate additional revenue by providing exactly what they already have,” she said.
One such hotel is Virgin Hotels New York City, located in the Koreatown area of Manhattan. On May 8, the hotel opened its rooftop pool for the second time, which can be used by day guests.
The cerulean blue tiled pool, surrounded by black and white lounge chairs, offers 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 people. The booth includes complimentary services and drinks such as wine and fruit. Billiard club day pass users can also get their own personalized server, depending on their choice. A day ticket to the billiards club starts at $130.
“Everyone needs a little break,” said Sarah Payton, the hotel’s director of partnerships and programs.
In May 2023, the hotel partnered with ResortPass, a site that provides day access to luxury hotels, resorts and spas, often at a discounted rate.
ResortPass, launched in 2016, has a 95% share of the same-day guest market and partners with more than 1,300 luxury hotels, including the Waldorf-Astoria, JW Marriott and Fontainebleau, according to the company.
The one-day guest platform has served more than 3 million users and provided one-day access in more than 250 cities, the company said, for as little as $25.
“What we can really do is give people a more local way to get away without having to leave,” ResortPass CEO Michael Wolf said. “I think it complements other types of travel and has the potential to replace them.”
The average ResortPass customer purchases all-day access for about $165, according to the company. Customers who buy day passes through ResortPass often spend more on a pool or other hotel amenities than on overnight stays, Wolf said.
“Our guests spend on average more than $250 on hotel space, and often a little more,” he said.
Wolf said ResortPass is currently working on a membership-like program for customers who frequently use day passes, with an announcement expected later in 2024.