Global hotel rates predicted to rise in Hotel Monitor 2020 report
American Express Global Business Travel (Amex GBT) has published its Hotel Monitor 2020 report, predicting ‘modest’ rises in hotel prices next year.
It says that a global boom in hotel construction is increasing the supply of guest rooms, just as international trade tensions put a dampener on demand.
These factors combined will restrict the ability of hotels to raise room rates in many business destinations.
Some key regional takeaways from the report include a prediction that in Europe, uncertainty about Brexit and low growth will lead to small room rate rises across the continent’s main business cities.
London is predicted a minor 1% rise in rates, compared to increases as high as 5% in South America.
In North America, flat occupancy and a large number of rooms in construction are predicted to limit hotels ability to raise prices. Meanwhile in Central & Latin America, “concerns about political and economic uncertainty have negatively impacted business travel.”
In the Middle East & Africa, supply is predicted to outstrip demand in most areas except Dubai, which is hosting the 2020 Expo.
In Asia Pacific, sustained demand and thousands of new rooms in key cities wil lead to increase in room rates. Domestic travellers are increasingly filling hotel beds, compensating for any falls in international visitor numbers.
Joakim Johansson, Vice President, Global Business Consulting at GBT, said: “Despite signs that the global economy is facing challenges, the number of people travelling for business and leisure continues to grow. But, in most cities, a full hotel development pipeline means this sustained level of demand will not feed into big rate rises.”
The full report can be viewed here.