Business travellers around the world are still paying more and more for their accommodation. While hotel rates have started to rise above 2019 levels fairly quickly, American Express GBT expects to see an across-the-board rise for the year ahead. Its Hotel Monitor 2024 report estimates changes in the average room rate in more than 80 of the world's major cities, with the biggest increase expected in Buenos Aires, with 17.5 % growth forecast for next year.
While fare growth in recent years has been driven by travellers in "revenge travel" mode, this leisure demand is set to slow down in 2024, according to the business travel agency. However, this slowdown should only have a negative impact on demand. little impact on room rates in the major destinations, nor the moderation in inflation expected worldwide next year. Hotel operating costs - particularly salaries - are still on the rise, and this is being passed on to room rates.
Staff shortages in certain markets are also limiting the number of rooms available for sale, which is why an effect between supply and demand which automatically keeps rates high. Similarly, some hotel projects have been slowed down by the covid and current financing difficulties, resulting in a more limited number of openings, again contributing to demand that sometimes exceeds supply. support their average prices the cornerstone of their strategy, unlike the great post-crisis sell-off of 2008. " Today, hotels are content with a lower occupancy rate as long as they can increase their rates." says the Hotel Monitor 2024 report.
Paris, gold medal for price rises in Europe
All this is contributing to a general rise in prices in all the world's major cities. Not least in France, where hotel prices are set to rise the most in Europe. As a result of the Olympic Games, hotels in Paris are likely to see a further increase of + 11% next year. And even then, the American Express teams didn't have time to take into account a possible tripling of tourist taxhas just been announced. And the major French conurbations are on the same track, with +9.5% expected in Lyon, +8.5% in Bordeaux, +7.8% in Toulouse and +6% in Marseille.
But travellers can expect same phenomenon everywhere else with an increase of +10.8% forecast in Amsterdam and between +9% and +10% in Dublin, Berlin, London and Barcelona. In Geneva, Glasgow, Hamburg, Madrid and Zurich, the increase is expected to be more moderate - between 4% and 5% - while in Turin and Milan, room rates are likely to remain fairly close to current levels.
Travellers to the United States should expect increases from 11% in Boston to almost 13% in Chicago, with increases of around +6%/+7% in New York, San Francisco and Toronto. The picture is similar in Asia, with Mumbai expected to rise by 15% and Shanghai by 8.4%, while Beijing, Tokyo and Sydney are expected to rise by between 4% and 5%. As for Cairo (+14.6%), Casablanca (+9.5%), Johannesburg (+7.3%), Dubai (+9.6%), Sao Paulo (+5.8%) and Mexico City (+4.8%), all these major hubs are no exception to the rule.
But is this litany of +X % and +Y% bad news for businesses? Not entirely, according to American Express GBT, which sees the continuing rise in business travel and meetings as a positive sign for companies. good negotiating leverage with hoteliers. " With the slowdown in demand for leisure travel, our position and that of our corporate customers at the negotiating table is more favourable, which means we can offer better fares to travellers. "commented Simon Fishman, Vice President Global Hotel at the business travel agency.
