Hotels are an essential piece of any strategic travel program. Program managers must continuously examine how they approach hotel management, especially as the industry continues to adapt to inflation, shifting corporate travel trends, and demands for sustainable accommodations.
Has your program reflected on these three questions as we approach 2025?
How are prices changing?
Staffing and inflation continue to contribute to rising hotel rates. Large-scale events, including trade shows and conventions, also play a role in price and availability in many destinations. Over time, demand has become less influential on price. With staffing shortages in mind, hotels are less likely to decrease rates to increase occupancy. Leisure demand is predicted to decrease, potentially benefiting corporate travel programs.
How can we control rates?
The value of your travel program is impacted by how much you need to spend to place employees in strategic locations. Controlling costs is possible with key partners in often-visited destinations. In some situations, it may be worth changing hotel partners to get the best pricing and amenities in key cities. In other locations, consider relying on programs like The Travel Team’s Global Hotel Benefits for discounts on the best available rates and other benefits.
How can smaller programs compete?
SMEs and other organizations with smaller travel programs can still take a strategic approach to hotel sourcing and negotiations. Consider partnering with fewer preferred suppliers to increase volume (and spend) at these properties for better rates and amenities. In markets where you do not have enough volume to support strategically sourced partners, take advantage of The Travel Team’s Global Hotel Benefits program which includes discounts between 5 and 50% off the best available rates at thousands of hotels.
Hotel Rates Around the World
North American Forecasts
Across the United States and Canada, hotel rates continue to rise. Inflation, worker shortages, and demand all contribute to rates, particularly in popular convention destinations.
United States
Chicago ↑ 12.6%
Boston ↑ 11.3%
San Jose ↑ 10.2%
Portland ↑ 9.5%
Dallas ↑ 8.2%
Atlanta ↑ 7.5%
Newark ↑ 7.2%
New York ↑ 6.8%
San Francisco ↑ 6.2%
Charlotte ↑ 4.6%
Canada
Vancouver ↑ 8.9%
Montreal ↑ 8.3%
Toronto ↑ 6.7%
Global Forecasts
Hotel rate changes vary widely from city to city around the world. Hotel development is mitigating rate increases in many areas, but increased demand and geopolitical tension could play a role in other destinations.
Latin America
Rate increases range from ↑ 4.8% in Mexico City to ↑ 17.5% in Buenos Aires.
Europe
Rate increases range from ↑ 0.9% in Turin to ↑ 11.0% in Paris.
Middle East
Rate increases range from ↑ 4.6% in Jeddah and Riyadh to ↑ 9.6% in Dubai.
Africa
Rate increases range from ↑ 2.2% in Lagos to ↑ 14.6% in Cairo.
Asia
Rate increases range from ↑ 1.9% in Hong Kong to ↑ 15.0% in Mumbai.
Australasia
Rate increases range from ↑ 3.5% in Auckland to ↑ 6.8% in Brisbane.
Global Hotel Benefits
The Travel Team’s Global Hotel Benefits increase the value of your travel program with expanded hotel options, discounts on the best available rates, last room availability, and complimentary upgrades at select hotels.
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