Buyers should adopt greater flexibility in their hotel programmes to reflect what is happening in local markets, new research has shown.
According to a study from travel management firm HRG, average room rate increases continue to be driven by "megacity" growth as regional and national trends "diminish", replaced by the economic and industrial strengths and weaknesses of individual cities.
HRG's biannual hotel survey, which analyses hotel room rates for key business destinations, showed prices in 37 of the top 50 cities increased when measured in local currency, however much of this growth has been driven by "significant movements in exchange rates".
"The survey reveals just how important it is for clients to have a firm grip on their hotel programme," said HRG director of global hotel relations, Margaret Bowler.
"The market is incredibly varied with regional and even national trends continuing to be replaced by micro trends effecting individual city performance."
Bowler added: "Clients need to ‘mind the gap’ in their negotiations, ensuring they are getting the right hotel, in the right location, at the right price."
According to the study Moscow remains the most expensive city for the 11th consecutive year, despite a 4 per cent year-on-year fall in average room rates (ARR), however the fall was masked by local exchange rate movement due to the effects of economic sanctions.
The Middle East & West Africa and Asia have both seen ARR growth, while Europe, Americas and Africa have once again seen ARR move backwards, the survey showed.
Aberdeen experienced ARR growth of 9.6 per cent in 2014, although this is down from the 11 per cent growth rates seen in the first half of the year. HRG said with the impact of falling oil prices and increased bed stock in the region, it is likely that the market will "continue to soften".
Bowler said: "It is increasingly important for clients to not only maintain control over the overall hotel programme, but to adopt flexible policies based on what is happening in individual markets.
“Our advice is that they need to concentrate and focus their efforts on directing business to preferred proprieties, not simply with preferred groups. In some circumstances this will mean limiting the number of properties in some cities."
She added: "By driving compliance, capturing data and benchmarking against city averages, clients will be in a better position to fine tune their policies and get the best results from their hotel programme.”
Last week HRG launched a new service aimed at the unmanaged and individual travel sector.
'Fraedom', which is an integrated technology and Software as a Service (SaaS) business, will operate independently within HRG.