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Budget hotel use on business continues decline
Budget hotel use by business travellers has fallen for the third year running, new research shows.
But the average hotel spend per night continues to rise, according to the findings from the annual Barclaycard Business Travel Survey.
It found that 58% of business travellers stayed in a budget hotel over the last year compared to 61% in 2004 and 69% in 2003.
Conversely, the average hotel budget per night increased from £93 in 2004 to £100 in 2005.
More than a third (35%) of business travellers cited cost as their reason for staying in a budget hotel.
In addition 50% say they provide adequate services for their needs ; 44% choose budget due to their good locations; just 10% are dictated by company policy.
Those who do not use budget hotels cite the principal reason as a lack of ‘extras’ and facilities (42%), followed by poor location (34%), and company policy (15%).
Further findings from the survey show that senior business travellers are just as happy to stay in budget accommodation as their colleagues with over half of CEOs (56%) and board directors (58%) saying they have done so in the last year. Managers were the most likely to go budget (62%), perhaps because they spend more nights away from home each month (4.3) than any other position, the poll found.
The vast majority (79%) of business travellers are swayed by price and location when choosing a hotel.
Other factors of consideration are: facilities such at gyms and technology (27%); company policy (17%); hotel loyalty schemes (9%); colleague or travel management company recommendations (7%)
Tim Carlier at Barclaycard Business said: “By increasing hotel spend, employers are allowing their staff to maximise their down time when travelling for business, and make the most of their time away.
“However, although budget hotel use appears to be in decline, we predict a levelling off in future years. They offer a very different service to premium business hotels and continue to be an excellent resource for companies.
“It is encouraging to see that each offering has its own place in the business travel market.”
Report by Phil Davies
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