"There's a limited amount of supply in the Washington D.C. hotel market, and a lot of people are going to be here."
By Mara K. Bell
Travelers are flocking to snap up the last of pricey hotel accommodations in the Washington D.C. area ahead of President-elect Donald Trump's second inauguration in January, yet several thwarted by high prices are calling what hotels are doing "price gouging."
Hotel rates for entry-level rooms range from $650 per night to as high as $2,800, most completely sold out, according to several major hotel booking sites.
Danny Gaekwad, a prominent Republican fundraiser and Florida hotelier, booked Hilton hotels in the D.C. area nearly three months in advance, spending a total upwards of $10,000.
"I understand the supply and demand, right? But this is not a supply and demand. This is price gouging," Gaekwad said. "But what's the worst part? If you book, you are in. They will not refund you."
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When he went to cancel a reservation, he faced a non-refundable disclaimer.
"[The hotel] told me, 'you didn't read the fine print,'" Gaekwad said.
Several travelers are trapped in the "fine print" when booking pricey reservations, with hotels often hiding their non-refundable fees. John Breyault, a travel specialist for the National Consumers League, described the need for clearly communicated cancellation policies.
"Admission should be provided to consumers in advance of a payment, or at least the reservation," he said.
Cancellation fees and no-cancellation policies are problematic in the consumer side of the world, especially because life happens, Breyault said, but even more so during high-demand periods like the inauguration.
"If somebody does have to cancel, chances are there's going to be somebody there ready to snatch that room right up," he said.
Price gouging is when businesses raise prices to unfair levels, especially when extraordinary circumstances like natural disasters or pandemics constrain the supply. However, the inauguration isn't considered an emergency.
"I hesitate to say that just because the hotel rates are much higher than normal, or at least in terms of non-inauguration time, that it necessarily means there's price gouging going on," Breyault said.
Instead, what we might be seeing with these skyrocketing prices is just a reflection of supply and demand, he said.
"The inauguration happens once every four years," he said. "There's a limited amount of supply in the Washington D.C. hotel market, and a lot of people are going to be here."
As of recent data, the District is home to approximately 149 hotels, offering a total of 33,639 rooms. In the broader Greater Washington Metropolitan Area, there are 772 hotels with 112,999 rooms, according to Washington.org.
In the past few inaugural seasons, prices averaged much higher than the post-inaugural months.
Hotel prices averaged $600 per night during the 2009 inauguration with hotel occupancies hovering around 98%, according to STR, a hospitality data organization.
In 2013 and 2017, for former President Barack Obama's second inauguration and Trump's first, the hotel business saw much of the same, with prices nearly 900% higher than the usual season, according to MarketWatch.
IHG Hotels & Resorts responded to a request for comment, stating that hotels are aware of each region's laws.
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"Pricing in our industry is based on supply and demand. There are strict state laws against price gouging, and hotels are very much aware and mindful of these penalties," IHG told the American Bazaar.
Dave Devadas, an Airbnb owner located in the heart of D.C., described that it wasn't unusual for the demand to increase at such levels during inaugural seasons.
"Biden's inauguration, that was very busy for us, because all the hotels were booked up," Devadas said. "Now, for January 2025 we were booked up I would say about five, six months [ahead]. Not uncommon, that would happen."
Breyault's advice for consumers during high-demand events like the inauguration is to focus on alternatives and pay attention to the fine print.
"You don't necessarily have to stay in a hotel, don't be too proud to ask a friend. D.C. is a very transient area," Breyault said.
Hotel prices in Washington, D.C., are not only prone to spikes during the high-profile presidential inaugurations held every four years but also see significant increases during other major events. Among these is the Fourth of July, a nationally celebrated holiday that holds special significance in the nation's capital, drawing crowds to its iconic historical and federal landmarks. According to AAA, 70.9 million travelers head 50 miles or more from home over the Independence Day holiday travel period in 2024.
Springtime in D.C. is synonymous with lively events and holidays that draw throngs of visitors to the city. From college Spring Break and the iconic Cherry Blossom Festival to the solemn observances of Memorial Day, the months of March through May are packed with activity. These celebrated occasions make D.C. a prime destination for tourists, inevitably driving up demand -- and hotel prices -- during this vibrant season.
The District serves as a hub for major sporting events, including baseball, basketball, and football. Hotel prices are heightened due to increased demand during this time -- DC's Capital One Arena which is home to the Washington Capitals (NHL) and Washington Wizards (NBA), hosts numerous events that can influence hotel pricing in the surrounding area. Hotels like the Kimpton Hotel Monaco Washington DC, located near the arena, usually experience increased bookings during major games and events.
Nationals Park is another iconic sporting venue hosting the Washington Nationals (MLB). This stadium attracts large crowds during baseball season. The nearby Hampton Inn & Suites Washington DC Navy Yard offers views of the park and is a popular choice for attendees.
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The District also becomes busy during graduation season, typically spanning from mid-May to early June, coinciding with commencement ceremonies at numerous local universities. In a 2008 online discussion regarding George Washington University, attendees noted that most hotels in D.C. during graduation were priced around $250 to $300 per night when booking directly.
Hotels across the U.S., especially the D.C. area, consistently see performance surges during major holidays. For instance, during the week between Christmas and New Year's, the average daily rate reached $157.91, the highest weekly level recorded by STR.
For travelers, navigating hotel price fluctuations and planning ahead can be key to managing expenses. However, when the issue extends to hotels exploiting guests through price gouging, non-refundable fees, and hidden fine print, it underscores the need for systemic reform in the hospitality industry.