Length of trips down 20%
Businesses are changing their travel patterns in the face of the global economic downturn, Hogg Robinson Group (HRG) said in its 2008 hotel survey.
The length of trips has dropped by 20% from 1.89 nights away to 1.5 and many companies are now using lower grade hotels.
Room rates in all regions rose during the year although more slowly than in 2007.
But they began to flatten or even fall as the downturn took hold in the last six months of the year.
But the downturn and the changing travel patterns were giving opportunities to both the business travellers and the hotels, Margaret Bowler, HRG's director global hotel relations said.
"During industry boom periods, hotels often denied bookers access to corporate rates in favour of more lucrative options," Ms Bowler said.
"This trend has now reversed and as occupancy levels balance out, corporates will gain greater access to negotiated rates.
"In parallel, as hoteliers seek to maintain rates, corporate travellers will increasingly be able to secure value added services as part of their rates including, for example, free internet access, complimentary parking, food and beverages."
Overall, HRG said its survey, drawn from industry intelligence and actual room nights booked and rates paid by its UK clients in 2008, presented a mixed picture.
While rates were generally flattening in the last months of the year, there were pockets of growth in cities where demand outstripped supply. These included Moscow, Berlin and Abu Dhabi.
While many companies were switching to lower graded hotels, five-star properties enjoyed a growth of 12% throughout the year, suggesting, Ms Bowler said, the the economic decline had not yet hit them.
The changing exchange rates also hit travel and room prices, especially for UK travellers with the pound falling 20% against the US dollar and 10% against the Euro.
US cities also fared well with average rate rises of 19% in Houston, 7% in New York and 6% in Washington and Boston.
Moscow, for the fourth year running, emerged as the world's most expensive city for hotels with a 22% rise in rate.
Its average rate rose from £249.38 to £303.38 per night
Next was New York whose rates rose 15% in terms of the British pound from £193.47 to £222.97.
Other cities in the top five were Paris, Mumbai and Abu Dhabi.
London dropped from tenth to 16th while Hong Kong and Bangalore also fell out of the top ten.
Ms Bowler said the challenging times were forcing hotels to stop denying corporates negotiated rates in favour of more lucrative sales.
"With a greater focus now on long-term stable relationships, hotels are opening up availability on corporate rates once more," she said.
"As such, we expect to see corporates looking to renegotiate rates and consolidate hotel programmes.
"Those willing to guarantee booking volumes, with fewer preferred suppliers, are likely to be able to negotiate better rates, including additional services, such as 'Last Room Availability'.
"This is now being offered as a value add after being off the market for many years, bringing down the overall price."
But Ms Bowler said these were challenging times for both the corporates and the hotels but with opportunities for both sides.
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