Industry Update: A Look at Hotels in 2025

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, although global inflation is predicted to decrease throughout 2025. Large-scale events, including trade shows and conventions as well as more leisure-oriented events, also play a role in price and availability in many destinations. In many cities, supply is increasing, 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.

With inflation cooling, availability may be just as strategically important as cost. In some destinations, it could be worth considering alternative room types or extended-stay accommodations. As personalization and technology add-ons become more widely available to travelers, update your travel policy to avoid surprise expenses.

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 in moderation. Inflation, worker shortages, and demand all contribute to rates, particularly in popular destinations.

Global Forecasts

Hotel rate changes vary widely from city to city around the world. New hotel construction is mitigating rate increases in many areas, but increased demand due to events and tourism could play a role in other destinations.

Enhance Your Travel Program’s Hotel Solutions

The Travel Team offers comprehensive hotel management services to support travel programs of all sizes. Turn to our team and technology for services including negotiation support, ongoing maintenance, and enhanced analytics. Organizations utilizing the Hotel Program Management service benefit from our proactive approach to an evolving hotel industry. We examine shifting factors on an ongoing basis to maximize the value and impact of your travel program. Our Hotel Rate Assurance program, which allows us to re-shop bookings for potential rate drops, ensures you get the best value every time—even if the best rates occur after you booked.

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.

Hilton Honors Power Up Promotion

For a limited time, when you book Hilton through The Travel Team, you can earn 2,500 bonus points on all stays at thousands of hotels and resorts, now through December 31, 2024. Hilton Honors offers flexible ways to spend your points:

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