United Kingdom
United States
Asia Pacific
Growth in business travel leads to rising prices
Hotel rates across the world rose 4% during the first half of 2011, indicating rising demand for international travel.
Of the 50 cities surveyed by Hogg Robinson Group (HRG), 33 reported year on year increases in rates, with the highest in the Asia Pacific region, where price are on average 7% higher than this time last year.
However, cities in Africa and Eastern Europe saw a fall in average hotel rates during the first six months of 2011 and UK cities reported weak hotel rates when compared to the previous year, despite the January VAT increase. Hotels in the Heathrow area reported strong growth but many other cities such as Liverpool showed a decrease in rates.
HRG group commercial director Stewart Harvey said: "Despite the fact that many large companies have put in place travel restrictions and cost reductions, hotel rates in the majority of cities surveyed increased. Demand is driving the rate.
“We can expect hotel rates to continue to rise as more economies grow and business demand picks up."
Director global hotel relations Margaret Bowler added: "The shift from Europe to Asia in hotel rate growth is significant in that it demonstrates changing business priorities. The rates demonstrate that demand has increased for travel to emerging regions as a result of the need to do business and that travellers are willing to pay higher hotel costs during their stay. Outside of Asia, Istanbul in particular has come out with strong rate growth.”
Over two-thirds of the cities surveyed reported hotel rate growth, compared with only one-quarter of cities last year, supporting signs of global recovery and pick up in business travel in recent months.
Moscow continued to be the most expensive city for hotels, having bounced back from last year’s 12% decrease despite many new hotel openings, demonstrating the city’s position as a strong business destination.
Istanbul saw the biggest increase of 37% due to an increase in business travel. HRG said visitors to the city were conscious of its security issues and more inclined to stay in five-star accommodation, pushing up rates.
By Linsey McNeill
Linsey McNeill
Editor Linsey McNeill has been writing about travel for more than three decades. Bylines include The Times, Telegraph, Observer, Guardian and Which? plus the South China Morning Post. She also shares insider tips on thetraveljournalist.co.uk
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