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September 2022, Virtual
September 29 2022, Virtual
Travel buyers have only seen London hotel prices rise by 1.4 per cent this year despite the Olympics and other major events in the city.
Average corporate rates at the UK capital’s hotels rose from £135 in 2011 to £137 this year, according to figures from accommodation booking specialist BSI.
This increase was around 5 percentage points lower than the overall 6.4 per cent rate rise for the entire London hotel market during this year.
Other UK cities to see an increase in rates were Manchester (up 3 per cent to £82) and Milton Keynes (up 1 per cent to £75) while Birmingham (-6 per cent) and Heathrow (-13 per cent) saw the biggest price drops.
“BSI figures show that London continues to be the top location booked in the UK with room night volumes up by 6 per cent year-on-year,” said BSI in its annual Corporate Benchmark Report.
“Analysis by BSI also shows a significant upturn in volumes in the other top 10 cities with room nights up by 16 per cent overall.
“Outside London, room nights in Birmingham are up by 18 per cent, Bristol up 19 per cent, Edinburgh up 17 per cent and Manchester up 31 per cent.
“These figures reflect greater consolidation of client volumes into preferred hotels in key locations.”
BSI is also predicting that the sluggish global economy will put more pressure on hotel prices next year.
Sam Welch, BSI’s head of hotel product, said: “Slow economic growth, in conjunction with a growing appetite for cost reduction and an increase in supply within the UK and internationally, should result in an even more competitive pricing environment in core locations in 2013.”
BSI is part of Capita Business Travel, which purchased fellow TMC Expotel for £16 million earlier this year.