Rates on the Rise
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.”