Rates on the Rise

The Business Travel Magazine - - Hotels -

Ho­tel rates are set to rise by some 5% in Western Europe next year, ac­cord­ing to the fifth an­nual Global Travel Fore­cast, pub­lished by GBTA and CWT in July.

The re­port says the ho­tel out­look for 2019 is driven by a grow­ing global econ­omy and rising oil prices, while an in­crease in air travel will in turn fuel de­mands for rooms. Other is­sues com­ing into play in­clude fur­ther merg­ers among big groups and mid­scale brands in­creas­ingly com­pet­ing with up­scale ho­tels due in part to a grow­ing ap­petite for bou­tique ac­com­mo­da­tion among younger trav­ellers.

Dy­namic pric­ing strate­gies are also likely to gather mo­men­tum, par­tic­u­larly in Asia-pa­cific, and in re­gions where ac­com­mo­da­tion is in high de­mand. Un­like static pric­ing, rooms are priced dif­fer­ently at dif­fer­ent times and are man­aged us­ing an au­to­mated rev­enue man­age­ment sys­tem. Cor­po­rates are of­fered a per­cent­age off the best avail­able rate. In ad­di­tion, the re­port con­tin­ues: “As cus­tomers look to drive more ef­fi­ciency in the ho­tel sourc­ing process, multi-year agree­ments will gain trac­tion, thus re­duc­ing the num­ber of ne­go­ti­a­tions re­quired each year.”

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