Milwaukee North News

Inflation is threatening to make this year’s holiday weekend far more expensive than last year’s as Americans make travel plans to get the most out of their three-day President’s Day weekend.

Jeff Welk, general manager of DoubleTree by Hilton Milwaukee Downtown, said inflation has impacted the hotel’s bottom line with labor costs and the cost of goods being so much higher. Looking at the average prices for a restaurant, hotel and gas in the state, weekend plans are likely to cost residents more money than they may have anticipated.

“Room rates are still a pretty good deal for our guests,” Welk told the Milwaukee North News. “Business is better, but not where it was, so we can't raise our rates too much. We have to remain competitive with the properties in our area."

The most recent data from the investment research platform YCharts shows that the average U.S. inflation rate for hotels and restaurants reached 7.30% by the end of 2021. The inflation rate for hotels and restaurants for year-end 2020 stood at 2.20%, representing a rate that is more than three times higher than it was a year earlier.

With this inflation increase, Welk said food and beverage outlets feel the effects more than the hotel side of the business does. Champion Traveler reports that when lodging in Wisconsin, nightly hotel rates range from $63 to $286, with an average of $91 per night, while most vacation home rentals will cost $200 to $790 per night.

“We are all in the same boat,” Welk said. “Some have larger debt than we did so it hurts them even more.”

Amid increased supply prices, Welk said the hotel has been struggling to get products with seemingly everything on backorder, including room amenities, bedding, towels and paper products.

“We hope to see the corporate traveler come back (once the) leisure market has picked up,” Welk said. “People want to go to concerts and see sporting events. We welcome them back with open arms.”

According to the U.S. Bureau of Labor Statistics, the Consumer Price Index (CPI) for food away from home rose 6.4% over the last year—the biggest 12-month jump since January 1982.  

In the state of Wisconsin, AAA reports the average cost for regular gas is $3.29 per gallon, while the average cost for diesel is $3.71. A year ago, average Wisconsin fuel prices were nearly 40% cheaper than they are today. Among the AAA state gas report archives, data shows the average cost for regular gas in Wisconsin during mid-February 2021 was $2.43 and the average for diesel was $2.69 per gallon. 

A recent Milwaukee TMJ-4 report provides feedback from Wisconsin restaurant owner Danielle Baerwald regarding the impact inflation has had on her Oak Creek restaurant, Erv's Mug. Baerwald is reportedly struggling with price increases across the board including food, beverage and take-out supplies.

"The grease has gone up, the flour has gone up, the beer has gone up. I haven't even started on the actual fish or the French fries or the cup to hold the coleslaw," Baerwald told TMJ-4.

With this, she said customers have noticed the increased prices and some question the business about the apparent rise. 

Kristine Hillmer, president and CEO of the Wisconsin Restaurant Association, commented on the inflation and price hikes the restaurant industry is seeing in wages. While she underscored concerns over rising prices, Hillmer said restaurants have also been struggling to attract and retain a full, quality staff.