International hotel rates stabilise
Contributors are not employed, compensated or governed by TD, opinions and statements are from the contributor directly
Hotel prices are stabilising with only a 1% difference in the world’s top 50 cities, according to new figures.
Results from Hogg Robinson Group’s (HRG) bi-annual hotel survey found that 23 cities have seen a year-on-year increase in their average rate compared to 33 last year, with Russia still one of the most expensive destinations followed by Lagos, Nigeria as security concerns mean travellers opt to stay in high-end hotels.
Mexico has seen rates increase 30% following more demand but a lack of new openings, while prices in future Olympic host city Rio de Janeiro has seen rates jump 15% in the last year.
Europe remained as the largest casualty, with rates down as much as 22% (in Barcelona), while prices in London and Liverpool boosted the UK.
“Macroeconomic weakness and uncertainty are driving room rates down across mainland Europe, but the significant growth in room rates across the Latin American region indicates a shift in business priorities towards high potential destinations,” said Stewart Harvey, group commercial director at HRG. “Businesses are not necessarily spending less on travel, but they are certainly looking for ways to make existing budgets work harder.”