Global Business Consulting team forecasts a wide range of hotel rate fluctuations across regions in 2019, as buyers prepare for RFP season
NEW YORK, NY – July 25, 2018 – The Hotel Monitor 2019, published by American Express Global Business Travel (GBT), finds geopolitical factors along with global, regional and local economics driving a diverse range of conditions for those negotiating hotel rates in key business destinations. The first in a series of Monitor reports, Hotel Monitor 2019 was created by the Global Business Consulting team at GBT to support buyers ahead of the hotel request for proposal (RFP) season.
The report includes a 2019 pricing forecast for 150 key cities around the world, plus a white paper on accommodations program optimization.
Global Uncertainty Impacting Travel Policies and Demand
Traveler security and political unrest are expected to be catalysts for significant rate fluctuations globally, and 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 activities.
Hotel Rates Rising Alongside Flourishing Regional Economies
The Asia Pacific region is anticipated to account for nearly two-thirds of global growth, with around 5.6% GDP growth in 2018 and 2019. This is reflected in projected hotel rate increases, and the Monitor finds similarly moderate rises in Latin America where the economy continues to improve.
Hoteliers Striving to Keep Pace with Increased Demand
Globally, growing demand for hotel supply often outpaces room availability. Limited supply growth combined with steady demand is boosting rates in many European destinations. However, in the Middle East, over-supply and other factors are pushing prices down in some Gulf states. North American hoteliers report increases in bookings and revenues, partly driven by strong business travel and group growth; rates are predicted to rise across the continent.
“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,” said Joakim Johansson, Vice President of Business Development, American Express GBT. “Reviewing how others have adapted to changing business conditions provides an important opportunity to identify best strategies and ensure time and resources are utilized in the most cost-efficient way possible.”
For comprehensive details and analysis of 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. Proven ideas and techniques to help effectively capitalize on these insights and appropriately optimize accommodation programs are available in GBT’s Smarter Buying white paper.
The Hotel Monitor 2019 is the first of a regular Monitor series: future editions will analyze air and ground transport, starting later this year and in 2019.
About American Express Global Business Travel
American Express Global Business Travel (GBT) equips companies of all sizes with the insights, tools, services and expertise they need to keep their travelers informed, focused and productive while on the road. With approximately 12,000 employees and operations in nearly 140 countries worldwide, GBT empowers customers to take control of their travel programs, optimizing the return on their travel and meetings investments, while, more importantly, providing extraordinary traveler care.
American Express Global Business Travel (GBT) is a joint venture that is not wholly owned by American Express Company or any of its subsidiaries (American Express). “American Express Global Business Travel,” “American Express,” and the American Express logo are trademarks of American Express and are used under limited license.