Cruise Ship Industry has made Miami to expensive to visit (credit card, hotels)

[questioner2]

I could not believe the costs of motels and hotels, when I researched them on the Internet, in the greater Miami area in late January when we are arriving in the area to spend a night before a cruise to the Caribbean. I remember coming to Miami in the mid to late 1990s and spending $40 for a nice motel in the winter. While wages have gone up maybe 30% since then, the costs of motels and hotels have doubled and in some cases tripled since 1995. I think much of it is because of the cruise ship industry. Also, people tend to be more extravagant now that most people use credit cards for almost everything.

How has the cruise line industry changed Miami?

[spyderman33]

I don't think it doesn't have anything to do with the cruise line industry... It's just supply and demand... Miami has become more popular in general and this has driven prices up... Very similar as to why it's more expensive to stay in LA or NY than Boise, ID...

[bale002]

Originally Posted by questioner2

Also, people tend to be more extravagant now that most people use credit cards for almost everything.

Originally Posted by spyderman33

I don't think it doesn't have anything to do with the cruise line industry... It's just supply and demand... Miami has become more popular in general and this has driven prices up... Very similar as to why it's more expensive to stay in LA or NY than Boise, ID...

Combine the three factors. Since 1995, with the expansion in telecommunications and information technology, among other things, the US has become a wealthier country as a whole, shifting up both supply and demand, and indeed, Miami has become more popular as more people have resources to visit and live in warm-weather areas.

At the same time, the money supply has increased at even a faster pace than the real increase in income and wealth.

These three factors go a long way in explaining the increase in hotel rates, and inflation in general, not only in Miami, but also places like LA, NY, SF, and I would venture to say even in Boise.