Hotel rates soar as SXSW visitors come to town

How much are you willing to spend for a hotel downtown during South by Southwest?

Although prices are skyrocketing, many people say it's worth the convenience.

There's an upside to staying downtown.

You can avoid the traffic and walk to pretty much all of the South by Southwest events but it comes at a cost.

Many hotels have been completely booked for a while now but for the places that aren't, the rate has risen a couple hundred bucks.

One of the most expensive hotels right now is the Radisson on Cesar Chavez. If you wanted to book a room for Tuesday, the price with tax starts at more than $800.

But when you look at a Tuesday a month from now, that price is $400 less. That's a big difference.

We spoke to some visitors who are paying more and others who decided to save.

"Supply and demand. When things get out of hand on a supply standpoint or demand standpoint, you raise the prices. I get it, I hate paying it but I understand why they do it. I'm not mad at it. I pay it because it's so convenient to where everything else is. It's right in the middle of everything," said Erik Moore, a hotel guest at JW Marriott.

"You're there to like, just sleep and wake up in the morning. Then you're gone for the entire day, so there's no point in renting or staying in a room that's like $1000 a night when you're there just for the night," said Lauren Groves who is staying at Firehouse Hostel.

Hotels are cheaper if you're willing to stay further out.

You can always purchase a pass for the SXSW official shuttle service to bring you downtown.

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