10 November 2021, Virtual
London, UK - November 2021
London, UK - December 2021
Soaring hotel rates continue to strain European corporate travel budgets, the latest survey by HRG shows. Companies faced double digit rises last year in many cities. Moscow remained the most expensive destination, with average rates increasing by 25% to £221.75 if calculated in sterling and by 21% in roubles.
Next came New York, with rises of 15% and 16% in pounds and dollars respectively and the hi-tec Indian centre Bangalore remained third most expensive despite lower increases of 8% in sterling and 13% in rupees. Those needing to organise frequent trips to Mumbai suffered the worst price inflation last year. UK companies footing bills in sterling saw rates there rocket by no less than 40% to £116.75. The survey covers achieved rather than rack rates.
Margaret Bowler, HRG's general manager of hotel relations, said Mumbai was experiencing under supply. "Our data shows that this lack of availability, combined with an increase of demand in the banking and finance sector and India's open skies policy, has led to increased traffic in the region and, as a result, significantly increased average rates."
The next highest rises in sterling terms were in Chicago (26%), Moscow, Singapore (24%) and Hong Kong 20%). Of the cities surveyed only Rome showed a decrease, with rates falling by 8% in sterling and 7% in Euros.
Ms Bowler said: "In such buoyant times it is vital that companies who have negotiated specific rates with suppliers ensure that they have last room availability and that their contracted rates have been loaded on to the GDS. This will help to avoid the possibility of their rates being 'denied' as hotels aim to achieve the highest rate possible. Our data shows that just 0.1% of all bookings are denied due to a hotel being genuinely full."
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