Slow rise in hotel rates

HOTEL prices will keep increasing in 2023 in most of the key cities for business events as demand for in-person meetings after pandemic disruptions grows, though at a slower pace due to a worsening economic outlook, American Express Global Business Travel said in its annual forecast.

Corporate travel managers and buyers have been dealing with difficulties in securing accommodation at good prices, while hotels struggle with inflation and talent shortages amid a rebound in tourism and business events, the firm said.

“While hotels can continue to benefit in 2023 from pent up demand for in-person meetings and events, the global economic outlook is unlikely to allow them to achieve rate rises on the same scale as seen in 2022”, the report added.

Rates in London are forecast to rise by up to 6.2 per cent next year, the study said. In Paris, room rates may rise up to 10 per cent, as it is set to host Rugby World Cup and prepare for the 2024 Olympics.