According to a new report American Express Global Business Travel has recently released, we can expect hotel prices to rise in 2023 (albeit at a slower pace than experienced in 2022).
As outlined in Hotel Prices 2023, a forecast of hotel prices in the top global business hubs developed by our Global Business Consulting (GBC) team, room rates are set to rise across every territory. Here’s a list of the top global business hubs we predict will have the highest projected year-over-year hotel rate increases for 2023:
- Buenos Aires, up 30%. Argentina continues to experience very high inflation. Analysts polled in August 2022 by the Central Bank of Argentina expect the country’s inflation to reach 90.2% in 2022, up 16.2 percentage points from the July forecast.
- Paris, up 10%. There’s an increase in travel for business and leisure travelers and a wave of hotel (re)openings. High-profile events like the Rugby World Cup and preparations for the Paris 2024 Summer Olympics also may contribute to the rising cost.
- Stockholm, up 9%. An uptick in travel demand and a shortage of hotel capacity due to the influx of travelers are some factors behind the price hike.
- Dublin, up 8.5%. The city has had a strong recovery in 2022, achieving some of the highest occupancy rates in Europe. Failte Ireland expects room nights by volume to recover to 2019 levels in 2023.
- New York, up 8.2%. Leisure rapidly rebounded, with occupancy reaching 87% of predisruption levels, the highest of any US tourism destination. Inbound group travel has been relatively strong, according to our transaction data.
- São Paulo, up 7.7%. Brazil has experienced double-digit inflation points since the third quarter of last year.
- Amsterdam, up 7.5%. Rising rates stem from the city’s high tourism rates, which quadrupled in the first five months of the year versus 2021. The Netherlands’ spike in inflation is another factor.
- Frankfurt, up 7.5%. With Germany easing travel restrictions later than its European neighbors, we expect pent-up travel demand.
- Seattle, up 7.5%. High demand along with low room inventory play a role in the surge in price.
To view the price increases we anticipate for hotels in 25 cities across the world as well as tips on smart sourcing strategies, download the report now.
Hotel Prices 2023 only provides a snapshot of a complex and dynamic topic. For the insight and execution needed to help you optimize your hotel program, get in touch with the GBC hotel practice line.