Global hotel prices are set to rise by 2.5 per cent in 2016 although there will be significant regional variations, according to a new report by Carlson Wagonlit Travel.
The TMC said that the biggest increases in hotel rates were likely to be in North America where they are set to rise by as much as 4.3 per cent next year.
CWT is also predicting a 3.7 per cent hike in prices in the Latin American and Caribbean markets, in its 2016 Meetings and Events Forecast report released this week.
But smaller increases are expected in Europe – particularly in the western part of the continent where rates are set to rise by only 0.7 per cent. Eastern European hotel rates are predicted to go up by 2 per cent.
Elsewhere, hotel prices in Asia are likely to increase by 3 per cent while rates in the Middle East and Africa are forecast to rise by 1 per cent.
“Demand in North America, both transient and group, continues to grow at a rate that exceeds new supply, and the result is a seller’s market causing challenges for meeting owners,” said CWT in its report on the global meetings market.
“Europe is seeing slow but steady growth with buyers gaining greater leverage. In Asia and Latin America, economic challenges are causing uncertainty.”
Despite higher hotel prices, CWT is predicting “positive growth” for the meetings and events industry in 2016 although there will be challenges for meetings buyers.
David Moran, executive vice president for CWT Meetings & Events, said: “We anticipate tighter hotel cancellation policies, growing food and beverage costs and an increased focus on compliance - particularly for our pharmaceutical clients.
“Many companies will try to harness their combined spend as they look for ways to cut costs and improve programme efficiency and control.”
CWT said that buyers in Europe are “gaining greater negotiating power as the region sees slow but steady growth”.
But the TMC warned: “Pockets of high demand will be created around the Rio 2016 Olympics and Paralympic Games next summer, resulting in a potential shortage of meeting space.”