Business Travel Show Europe Kick Off, 23 February,
Global Travel Risk Summit Europe, May 2023,
3rd Annual Sustainable Business Travel Summit
MOSCOW REMAINS theworld's most expensive destination for corporate travellers, with hotel rates rising by an average of 25 per cent during the first six months of the year. In Berlin, average rates soared by a staggering 39 per cent - the highest of any city - while in Mumbai there was a 37 per cent surge. According to Hogg Robinson Group's (HRG) latest six-month hotel survey, London room rates rose by a modest 2 per cent, resulting in the city dropping to 16th overall.
With sustained demand in certain cities, availability is an ongoing challenge. Data shows that 36 per cent of denied bookings are either due to a lack of a negotiated rate, or hotels choosing to 'close out' agreed rates in favour of more lucrative options.
"This highlights the need for businesses to secure a comprehensive and effective hotel rate programme," says Margaret Bowler, director global hotel relations at HRG. "The hotel industry has continued to show an increase in hotel rates, albeit at a slower rate than we saw for the same period in 2007. However, as the market softens we can expect to see more hotels adopting sensible pricing in order to maintain current occupancy levels."
In the Middle East, Abu Dhabi entered the top 10 for the first time and, with an average rate growth of 23 per cent, its rates now rival those of Dubai. Average rates in Eastern Europe and and Asia/Pacific grew by 22 per cent and 20 per cent respectively, where there is a continued focus on the luxury end of the market, combined with a shortage of supply as hotels struggle to keep pace with demand.
Rates in New York remained relatively static, with marginal declines of three per cent in Houston and two per cent in San Francisco.
HRG's survey is based on a combination of industry intelligence, actual room nights booked and rates paid by its UK clients during the first six months of the year compared to the same period in 2007.