We recently published The Hotel Monitor 2019, as the first release in our upcoming Monitor series. The Hotel Monitor revealed that geopolitical factors – along with global, regional and local economics – are driving a diverse range of conditions for those negotiating hotel rates in key business destinations. Including a 2019 pricing forecast for 150 key cities around the world, as well as a white paper on accommodation program optimization, this Monitor – created by the Global Business Consulting team – is key reading to support buyers embarking on the hotel RFP season.
Joakim Johansson, Vice President of Business Development said, “As we enter hotel RFP season, overarching global and market tendencies will play a critical role in the operational and financial success of travel programs.”
He continued, “Reviewing how others have adapted to changing business conditions provides an important opportunity to identify the best strategies and ensure time and resources are used in the most cost-efficient way possible.”
At the conclusion of this article, you will find links to the full Hotel Monitor, as well as our Cities Forecast and Smarter Buying white paper. In the meantime, we are excited to share some of the highlights from this extensive research.
Traveler security and political unrest are expected to drive significant rate fluctuations globally, while demand for more security-compliant properties is growing – particularly in upscale hotels. Global policy trends, such as the impending Brexit and changes to the NAFTA trade agreement, are also expected to impact trade and travel.
Hotel Rates Rising
The Asia Pacific region is anticipated to account for nearly two-thirds of global growth. This is reflected in projected hotel rate increases, and the Monitor found moderate rises in Latin America due to the improved economy.
Across the globe, growing demand for hotel rooms often outpaces room availability. As we see limited supply growth as well as steady demand, rates in many European destinations are increasing. However, in the Middle East, over-supply and other factors are pushing prices down in some Gulf States. North American hoteliers have reported increases in bookings and revenues, partly driven by strong business travel and group growth, with rates predicted to rise across the continent.
For comprehensive details and an analysis of the factors impacting hotel rates at a national, regional and local level in 150 key cities, please download the 2019 Hotel Monitor report and the 2019 Cities Forecast. For more ideas and techniques to help capitalize on these insights, please refer to our Smarter Buying white paper and a recent article with tips for the hotel RFP process.
Future editions of the Monitor will analyze air and ground transport, and we look forward to sharing these with you.