18 October 2021 - Virtual
10 November 2021, Virtual
London, UK - November 2021
Increases in hotel room rates around the world are being led by ‘supercities’ rather than national trends, according to a study published by TMC Hogg Robinson Group (HRG).
The study found average room rates (ARR) have tended to be affected on a national basis but now individual destinations, such as Singapore, Barcelona and Beijing, are driving up room rates and “bucking” certain country’s economic trends.
The annual study analysed hotel room rates for key business destinations across the world to provide an insight into global business travel behaviour.
The study found Europe and America have taken the lead on ARR recovery in 2013 as markets and industries have picked up and business travel has been placed “firmly back on the agenda”.
HRG’s group commercial director, Stewart Harvey, said: "In our study last year we referenced “supercities” which had begun to buck national trends and forge their own path. We’ve seen this trend continuing to grow.
“We’ve seen it with cities such as Barcelona and Beijing, where exchange rates may not necessarily be working in their favour retaining strong positive growth as their popularity as both business and leisure destinations goes from strength to strength,” said Harvey.
He said the hotel industry has always been at the forefront of pricing with rates constantly adjusted to demand. “The need for the right hotel, in the right location, at the right price remains the primary objective for all corporate clients.
“The balance between price, location, quality and availability will continue to drive the market during 2014. This reflects the need for a well managed corporate hotel programme,” he added.
The study showed Moscow had the most expensive room rates for a tenth consecutive year at £259 a night, despite a slight decline of 0.7 per cent, this is followed by New York (£235) and Geneva (£216).
New York had the biggest percentage growth of 6.95 per cent in 2013 compared to the previous year.
The study found positive changes in the financial industry has led to an upturn in ARR for London, which has an ARR of £168. Its largest airport Heathrow is seeing an over-supply of hotel rooms, which has led to discounting across the board.
Abu Dhabi is still following in the footsteps of Dubai, with continued unprecedented levels of construction, which has added further hotel rooms to a market where supply significantly outweighs demand.
German capital city Berlin also has an oversupply of hotel rooms due to several new openings, which has led to a downturn in ARR.
The study also found a drop in ARR for Madrid and Mexico City.
Click here to view the Top 55 cities globally by Average Room Rate