The bill for business travel is set to be high this year. As we might have feared from the forecasts published in January as part of the HRS Outlook study, business hotel rates are soaring. Industry specialist HRS has just released the results of the Hotel Price Radar barometer for the first quarter. These figures reflect a widespread surge in prices.
Paris remains relatively unaffected, even though the contained rise in the average room rate (+1.6%) is described as a ". promising upturn "This follows on from the decline in 2016 (-4.3%). Nevertheless, the " recovery wind "At Roissy-CDG, the average cost of a night is €116, compared with €107 in the first quarter of 2016. This represents an increase of 8.4%. At national level, HRS's price forecast shows an increase of " modest but promising recovery "from the hoteliers' point of view. From Nantes (+1.1%) to Strasbourg (+2.2%), from Bordeaux (+1.1%) to Toulouse (+1.1%), price increases remain measured. The average rate even fell significantly in the PACA region, particularly in Nice (-12.8%) and Marseille (-16.7%). Lyon stands out with a nightly rate of 111 euros, up 7.8% on last year.
Across borders, the phenomenon is much more marked. The Iberian peninsula showed consistent growth, with Lisbon and Madrid up 8.6% and Barcelona up 8.7%. Hotels in Rome did even "better" (+9.1% to 96 euros), but remained ahead of Copenhagen (+10.9%), while Moscow recorded a spectacular rebound (+26.5% to 105 euros).
Across the Atlantic, a number of business destinations are also experiencing double-digit growth. This is particularly true of Rio (+23.9%), Toronto (+29.1%) and, to a lesser extent, Buenos Aires (+13.8%). Mexico (+14.4%). In the end, however, it is Washington that takes the honours in this Hotel Price Radar Barometer. According to HRS, the federal capital is the most expensive destination in the world, with an increase of 16.9% to €242.
enough to make buyers break out in a cold sweat
Overall, the findings for the first quarter corroborate the projections made at the start of the year, as John Baird-Smith, Director of HRS France, points out. " According to the HRS Outlook study conducted in January 2017, average hotel rates are set to rise this year, regardless of continent. Based on the results for the 1st quarter, we can see that this trend is confirmed and validates the increase to come over the year. Enough to give cold sweats to buyers who may not have anticipated these trends. ".
John Baird-Smith does not fail to underline the uncertain nature of the economic and geopolitical context: " It is true that the last few months have made it difficult to look ahead, given the new political and economic context in the USA and the UK, not to mention the elections in France and Germany. We could also mention the IMF's recent positive growth forecasts, which should have an impact on the development of trade, in fineon hotel rates. A sum ofuncertainties which can have an impact on corporate hotel spending. Once again, companies that have chosen to maintain a portfolio of negotiated rates on their strategic hotels will do well. ".
