The hotel industry has not seen any decline despite high inflation and a weakening economy.

The exact opposite is true with HiltonChris Nassetta is the CEO and predicts the greatest summer the chain has ever experienced in its 103 year history.

The Covid-19 pandemic ravaged almost every industry, including travel. Travelers have since returned to the United States as a result of increased vaccination rates and loosening restrictions. The global leisure and business flight market was booming in May. topped 2019 levels for the first time since the pandemic started.

The high demand for hotel rooms from other travelers has led to increased prices. However, the cost of this increase is still a concern.

Nassetta, CNBC’s “Squawk on the Street,” said Monday that the price of everything has risen. 

According to Nassetta, two factors were driving high demand: The leisure consumer’s $2.5 trillion worth of incremental savings and the strong balance sheets of corporations paired with “very great” profitability.

His words were, “They have been there for 2 years. From a leisure perspective and from a business standpoint with meeting and event without the ability to do what they need.” The availability and need for discretionary income are both there, so they can do what they want.

MarriottTony Capuano, CEO, stated that the revenue per room (which measures performance in hotels) increased by 25% over Memorial Day Weekend 2022. The Marriott luxury portfolio includes properties like JW Marriott and Ritz-Carlton. These hotels experienced a nearly 30% rise in rates for the first quarter 2022, compared with 2019.

Capuano stated that he believes as long as service is delivered, which may be difficult in labor-intensive markets, there will continue to be remarkable pricing. Capuano made the remarks on Monday’s “Closing Bell”. However, Capuano did mention that there was an “exceedingly large rate potential” at places like coastal destinations and leisure destinations. He also noted that “the middle of the country has not seen as much of the city markets returning.” 

The Biden administration could provide another boost in demand. now droppedFor international travelers, Covid-19 is required.

Although other countries, such as the United Kingdom or Greece, have relaxed their rules, the U.S. required that all travelers present proof of negative Covid-19 testing at least one day prior to boarding any U.S.-bound flights, regardless of whether they are vaccinated. This was the only country that still enforced such rules.

The restriction, according to executives in the industry, was hurting international travel demand. Capuano told Seema Mody that pre-departure testing causes uncertainty and may encourage travelers to select destinations with lower friction.

Roger Dow, President of U.S. Travel Association, stated in a statement that “The Biden Administration is to be commended” for his actions. He said the action will bring back travelers from all over the globe and speed up the recovery of America’s travel industry. Businesses and workers in the United States who are struggling to recover their losses due to this important sector of travel, recognize how vital international inbound is.

HyattPresident and CEO Mark Hoplamazian stated on Tuesday’s “Squawk on the Street,” that foreign tourists to the U.S. are more likely than domestic travellers and that the requirements for testing were creating friction.

Even though there are no travelers who have decided to put off their travels due to the demand, it is still high. Hoplamazian stated that “Pretty much everywhere, all business segments as well as leisure are firing on all cylinders.”

Keith Barr is the CEO IHG Hotels & ResortsThe owner of brands such as Holiday Inn and InterContinental Hotels, stated that demand will continue to rise for the remainder of the year because travel has become more routineized following the pandemic.

As inflation and other costs continue to rise, this will most likely result in further price hikes.

“The demand is so strong … we’re having the ability to price, but in fact, we haven’t even been keeping pace with inflation,” Barr said on “Closing Bell” on Tuesday. Barr said that there is still some pricing power available in the business and that demand will increase through the summer.

These prices are likely to rise because there is “very little new capacity entering the industry,” Nassetta stated.He said that the laws of supply-demand, economics and economics are still in force.