Banff Hotel Prices Nearly Double in Four Years

A spontaneous weekend in Banff isn’t what it used to be.

New data shows the average nightly hotel rate hit $414 in 2024, almost double the $231 average during the pandemic years of 2020 and 2021. Even compared with pre-COVID years, when a night averaged $269 (2017–2019), the jump is steep.

And that’s just the average. During peak summer months, rates soared to $525/night, underscoring just how much affordability has tightened in recent years.

The kicker? Hotels are making far more money even as they fill fewer rooms. Annual revenue in Banff reached $588 million in 2024, a 42% jump compared to 2019, despite lower occupancy. Before the pandemic, hotels regularly ran above 90% full in peak summer. Now, they’re earning more by charging higher rates while operating with fewer occupied rooms.

For context, Canada’s overall cost of living rose 18.99% from 2019 to 2025. In other words, what cost $100 in 2019 now costs about $119. Banff’s hotel rates, by comparison, have surged far beyond that baseline, climbing 79%.

Locals are feeling it. Calgary resident Karen Paulos told Bow Valley Insider: “We used to love getting away from Calgary 4 or 5 times a year for a wonderful weekend, great food, and no worries about driving home after. But, I know my husband and I can unfortunately no longer afford a quick weekend away to Banff or Lake Louise anymore, especially in the summer now!”

Why Hotels Earn More While Filling Fewer Rooms

Banff councillor Barb Pelham flagged a curious trend: as occupancy rates dropped, average daily rates climbed. One reason? Staffing shortages. Even as visitors returned post-pandemic, many hotels couldn’t operate at full capacity. With fewer rooms available, operators raised rates to cover costs. And it worked.

Pre-pandemic, Banff typically had about 5,659 rooms online each year. That number dropped in 2020–21 when properties closed or scaled back. Some hotels never fully reopened their inventory, which kept supply tight even after demand bounced back. Less supply + steady demand = higher nightly rates.

Beyond staffing, this isn’t just market chaos; it’s part of a broader play. Banff & Lake Louise Tourism has leaned into a “high-value guest” approach: fewer bodies, more spending. The idea is to draw travellers who stay longer and spend more, rather than chasing raw visitor volume. It’s a values-based strategy to reduce pressure on the park while still delivering revenue.

That philosophy dovetails with the data: nightly rates climbed from $231 in 2020–21 to $414 in 2024. Hotels are proving they can earn more with fewer guests by leaning on premium pricing.

Ripple Effects for Locals

For the Calgary weekenders, the change is clear: weekend getaways are harder to justify. Families that once booked a couple of Banff nights each year are sticking to day trips or heading for alternatives like Cochrane or Calgary staycations.

That shift matters because hotels anchor the broader visitor economy; restaurants, shops, and guiding companies all depend on overnight guests. With fewer Albertans filling those beds, more of Banff’s economy now leans on international travellers willing to pay premium rates.

Why It Matters

Town officials are clear that the accommodation sector’s financial health is central to Banff’s overall economy. But for locals, the steady climb in hotel rates raises questions about who Banff is really for: the spontaneous weekend visitor from Calgary, or the big-budget international traveller.

For now, the numbers suggest the answer is the latter.