In mid-April, the British pound rose above $2, its highest level against the dollar since 1981. While that’s not good news for Americans traveling abroad, it’s cause for a British invasion. Travel agents in Great Britain reported a 30 percent increase in bookings for American vacations as the pound inched upward. And with the dollar’s value against the euro continuing to fall, other Europeans may be joining them.
The bottom line? International demand will add to the current room compression scenario, putting even more pressure on rates in gateway cities like New York and Washington.