London drops out of top ten most expensive cities
London is no longer one of the top ten most expensive cities in the world to for business travellers to stay in. Demand for hotel rooms in the capital slumped by 10% last year over 2002 as corporate travellers tightened their belts in the face of global economic slowdown, the Iraq war and SARS. Average room rates in London declined by five per cent last year, from £128.74 to £122.55, and the city dropped out of the top ten high cost cities in the world, according to a survey by BTI UK. Regional hotels in the UK also suffered as travel managers discouraged unnecessary meetings or curbed overnight stays. There was also a decline in stays at airport hotels but budget hotels like Travelodge saw increased demand. The travel management company’s annual hotel survey, based on a combination of industry figures, room nights booked and rates paid by more than 7,500 clients in 2003, show that worldwide rates declined by four per cent to give an average of £106.64. More than two-thirds of destinations surveyed saw room rates decrease as corporate travel demand dropped by 10%. However, BTI expects demand to recover in 2004 and room rates to rise again. Hotels in Milan and Paris emerged as the most expensive in the world, with room rates up by six and nine per cent respectively. London dropped from sixth to 11th place. BTI UK hotel relations general manager Margaret Bowler said: “ Last year saw many companies restrict external meetings and overnight stays and as a result we noted sharp drops in both volume and rates in key UK cities. This is in direct contrast to 2002 when the UK regions held out well. “Where it has been necessary to travel, clients chose short-haul destinations and European cities have subsequently reaped the benefits.” But she added: “2004 will be the year in which we see tactical rates disappear. There are clear signs that the market is beginning to recover and we will shortly see rates start to rise. “Clients therefore need to ensure they have last room availability or allocations on their negotiated rates, otherwise they may find they are unable to secure rooms in key destinations. His will become increasingly important as many hotels have stopped using third party internet sites to drive business in order to retain control of their room stock.” MOST EXPENSIVE CITIES WORLDWIDE 2003 (2002 position in brackets) 1 Milan (3) £148.09 (+6%) 2 Paris (4) £147.62 (+9%) 3 New York (2) £144.22 (-11%) 4 Rome (1) £138.87 (-22%) 5 Copenhagen (10) £138.57 (+14%) 6 Stockholm (5) £138.07 (+2%) 7 Geneva (8) £133.48 (+8%) 8 Frankfurt (-) £130.99 (+15%) 9 Amsterdam (7) £128.41 (+1%) 10 Zurich (9) £127.37 (+3%) 11 London (6) £122.55 (-5%) Report by Phil Davies
Phil Davies
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