So far, we’ve looked at day-to-day indulgences that could be trimmed. Of course, big-ticket items — like the necessary purchases for a good ol’ summer vacation — can be put off as well.
That could weigh heavily on Choice Hotels International (CHH) — the company behind chains like Comfort Inn, Comfort Suites, Quality, Clarion, Sleep Inn, Econo Lodge and others. Higher gas prices could easily cut into vacation budgets, as even the four or so hours my family drives every year to the beach itself takes a toll on our pocketbook.
Plus, the trouble with hotels especially is that there’s hardly a trickle-down effect as people cut back on spending. Folks who generally stay in upscale hotels aren’t going to downgrade to fill the spot of folks who can no longer afford their getaway.
Of course, this is all speculation, and it might be wise not to get too negative on Choice — CHH has been killing it so far this year, outpacing the broader market’s gains handily.