The return of high occupancy levels and increased demand for accommodation in many cities will lead to a sharp rise in hotel rates, the Advantage conference in Dubai heard today.
The CEO of Worldwide Independent Travel Network, Neil Armorgie, advised travel buyers to negotiate two-year deals with hotels that are in cities with high occupancy levels, such as London, New York and Paris.
He also said to re-negotiate better rates at those hotels that have suffered a downturn in demand over the past year.
"The shape of the corporate hotel sector is a positive one and business travel is definitely back," said Armorgie ."This brings an increasing importance on hotel rates.
"Prices are rising due to higher occupancy levels so buyers must consider how to negotiate the best deals. If you have a lot of business in cities that have seen large rises over the past year look at tieing down a two-or-more year deal.
"And in turn those dropping occupancy levels, look to re-negotiate your rates."
Armorgie also said hotels must continue to adapt to the changing needs of the business traveller.
"The increasingly blurred lines between business and leisure has meant travellers are becoming smarter and will no longer accept different rates for different purposes of stay.
"The Internet has provided transparency and hotels are still desperately clinging on to those differential rates between business and leisure."
The conference was asked in a snap poll: Are hotel commissions here to stay? From around 100 respondents; 47 said they would be around for more than five years, 48 said two to five years and six said less than a year.