Hotels offering “added value” to secure business travellers
Tuesday, 04 Feb, 2010
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There is still some way to go before hotel rates stabilise in the wake of the global recession.
Releasing the findings of a 2009 annual hotels study by travel management company HRG, the firm’s Margaret Bowler said: “The patterns in this hotel survey would suggest that the industry has some way to go before rates stabilise in 2010.
“Whilst indications are that rates will remain flat in most markets globally, there are signs of increasing occupancy as the effects of the recession begin to ease off in certain markets.”
She advised client companies to continue to look to renegotiate rates and consolidate hotel programmes to secure lower rates.
“Those willing to guarantee booking volumes, with fewer preferred suppliers, are likely to be able to negotiate lower pricing and add-value items within their rates such as food and beverage discounts, free wi-fi access and reduced parking charges – items that represent a ‘real’ cost in terms of total cost of stay,” said Bowler, HRG’s global hotel relations director.
The study found the average room rate in London in 2009 was £151.45.
Moscow was the most expensive city in the world to stay in for the fifth consecutive year with a rate of £266.56 followed by Abu Dhabi, New York City and Paris.
But Bowler said: “Previously hotels could deny bookers access to corporate rates in favour of more lucrative options. In 2009, the playing field levelled and this trend reversed as occupancy rates decreased and corporates gained greater access to negotiated rates.
“Hoteliers have tried to maintain rates and therefore corporate travellers have increasingly been able to secure added value services as part of their negotiated rates such as internet access, parking and breakfast.”
Centre for Economics and Business Research chief executive Douglas McWilliams said: “We have just been through the deepest recession since the 1930s and the recovery remains at a relatively early stage.
“The latest Hogg Robinson Group hotel survey vividly illustrates the effect of the downturn in demand on the hotel market.
“But it also shows signs of recovery across the globe, particularly in dynamic emerging economies.
“In the UK, 2009 was a tough year but the weak pound offers hope for the UK economy in 2010, as illustrated by the London market faring better than other UK cities.
“Looking ahead, we expect the recovery to continue in 2010 but this will not be without challenges as the unprecedented policy stimulus across the globe is gradually withdrawn.”
by Phil Davies
Phil Davies
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