PANAMA CITY — Bay County and its surrounding region clocked in with some of the most expensive hotel rooms in the country last year, according to a report ranking 210 “designated market areas” (DMAs) based on average nightly hotel prices.
The Hotel Price Index, developed by accommodation booking website Hotels.com, ranked the Panama City DMA as the 10th most expensive in the U.S. for hotels with an average of $151 per night in 2014.
Honolulu ranked first on the list, with an average room night costing $239, followed by New York City at $226. Other areas in the top 10 include Boston ($189), San Francisco ($183), Miami ($178), New Orleans ($170), Salisbury, Md. ($167), Santa Barbara, Ca. ($164), and Monterey, Ca. ($157).
“These are based on actual prices based on Hotels.com,” said Taylor Cole, public relations director for Hotels.com. “They’re not advertised rates. The average will include people paying a lot more, but also paying a lot less.”
With more than 325,000 bookable properties over the Expedia network, Cole said the Hotels.com report is often a good representation of the overall market environment. In addition to traditional hotel rooms, the site also books bed and breakfasts, extended stay rentals and vacation rentals.
Cole said rising hotel rates are a reflection of an increase in demand for overnight stays in a certain destination.
“It can definitely be a good thing,” Cole said. “As your prices change with supply and demand, it shows an increase in demand.”
However, the Panama City DMA, which includes Bay County and eastern Walton County, was the only one in the top 20 to fall in price slightly between 2013 and 2014, from $152 to $151.
A similar report distributed in mid-2014 highlighted the Panama City area as a “charming” option for U.S. travelers.
“From the city’s 27 miles of white-sand beaches to its growing number of chic alfresco dining options and family-friendly attractions, Panama City will continue to charm U.S. travelers,” the report said.
Dan Rowe, director of the Bay County Tourist Development Council, said the data reflects increased visitation in Panama City Beach and the state as a whole in recent years. Both Panama City Beach and Florida as a whole saw a record number of visitors last year, with the state welcoming 97 million tourists.
“I think that our ranking on Hotels.com goes to show what a popular destination Panama City Beach has become,” Rowe said. “We have a variety of places to stay, and visitors come to our area with a wide range of travel budgets in mind, too. But it’s the high quality of the beach vacation experience in Panama City Beach that makes us a great value at any price.”
However, the Panama City and Panama City Beach metro area reports for hotel prices through Hotels.com were a bit different than reports for the domestic market areas, which represent a larger region that includes much of Walton County.
Panama City Beach, which garners the most vacation properties in the county, clocked in at an average price of $156.56 per night, down slightly from $157.17 in 2013.
The beach’s hotel rates are seasonal, however, with some months garnering much higher rates than others. According to data from Smith Travel Research, March drew the highest average nightly hotel rate in Panama City Beach at $183, followed by July at $178 per night. January was the lowest month for rates at an average of $65 per night.
Panama City’s rates through Hotels.com rose 2 percent year-over year, from $96.08 per night in 2013 to $98.04 last year.