Hotel prices in global business hubs will continue to increase in 2023, impacting corporate events as demand for in-person meetings grows, though at a slower pace due to a worsening economic outlook, according to an American Express Global Business Travel report.
New York should see hotel prices increase by 8.2 per cent in 2023, driven by demand for in-person meetings and sustained by resilient leisure demand, the annual forecast reported.
Rates in London are forecast to rise by up to 6.2 per cent next year as hotels face inflationary cost increases for labour and energy.
In Paris, room rates may rise up to 10 per cent as the French capital is set to host events such as the Rugby World Cup and prepare for the 2024 Summer Olympics.
Cities such as Madrid and Barcelona will increase hotel prices in line with the rest of the main business cities in Europe with average hikes of around 7.2 per cent and 6.6 per cent respectively.
Corporate travel managers and buyers have been dealing with difficulties in securing accommodation at good prices, while hotels struggle with inflation and talent shortages amid a rebound in tourism and business events, the consulting firm found.
“While hotels can continue to benefit in 2023 from pent-up demand for in-person meetings and events, the global economic outlook is unlikely to allow them to achieve rate rises on the same scale as seen in 2022,” the report added.
The company said forecasting hotel prices after two years of pandemic-related travel disruptions and uncertainty over the global economy was challenging and that the data team combined historical transaction data with macroeconomic factors to generate the prices forecast for 2023.
Via AAP
