Five-star hotel rates soar by 15%
Hotel rate increases in 2006 have been directly proportionate to a hotel’s star rating – the higher the star rating, the greater the growth in average rate achieved, a survey shows
The research by travel management company HRG found that five-star market rates are up 15.2% on the previous year, compared to just 4.8% in the budget sector.
Average rates have increased year on year across all star ratings. HRG’s data reveals an increasing disparity of rates between the budget and three-star, and four and five-star sector hotels.
Moscow is once again highlighted as having the most expensive average corporate hotel rates worldwide, increasing 29% to £219.19. Mumbai saw the highest increase in average rates (46%) amongst those cities surveyed.
All regions have recorded rate growth, with the Asia Pacific region achieving the most significant increases whilst the UK market’s room rate growth has slowed slightly.
Corporate rates in Germany rose significantly due to the ‘World Cup Effect’.
Tactical rates have now all but disappeared, with any such rates that appear in periods of exceptionally low demand facing more restrictions and increasingly applying to leisure destinations, accord to HRG.
The survey was based upon a combination of industry figures, actual room nights booked and rates paid by UK clients during January-September compared to the same period in 2005.
HRG UK hotel relations general manager Margaret Bowler said: “The global hotel industry has once again seen significant growth in the first nine months of 2006 and has demonstrated a strong set of results in terms of average rate performance.
“The budget sector has witnessed aggressive expansion with a resulting increase in rooms available and competitive pricing policies designed to maintain market share and secure new customers. We anticipate that the five-star market will continue to perform strongly as major chains look to expand in key destinations worldwide including London, China, Doha, Dubai, Eastern Europe and Moscow.”
Report by Phil Davies
Phil Davies
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