A recent report by American Express Global Business Travel revealed that hotel prices are expected to rise over the next year, with European cities seeing the biggest increases.
Meanwhile, the Travel Management Company’s (TMC) 2023 hotel rate report highlighted that hotels face many issues that will drive up prices, including staff shortages, managing subdued demand and rising inflation, reports SchengenVisaInfo.com.
According to American Express GBT, hotel prices have increased significantly this year, especially in destinations that lifted their travel restrictions in early 2022, which has also led to an influx of visitors mainly for leisure.
In addition, TMC forecasts indicate that the EU and the Americas region will experience the largest increases in hotel rates in 2023, compared to cities in Asia-Pacific, which will see a smaller increase.
Among the destinations that will see a higher price increase in 2023 are the following:
- Paris + ten percent,
- Stockholm + nine percent
- Dublin +8.5%
While London, which has hit a record rate of hotel price increases this summer, is expected to raise hotel prices again by another 6.2% next year. Meanwhile, Amsterdam and Frankfurt will also see a 7.5% increase in hotel rates in 2023.
However, the biggest increases that will be felt outside the EU will be in cities like New York with +8.2%, Sao Paulo with +7.7%, San Francisco with +7.3% and Dubai with 7%.
As for major business travel destinations in Asia, Singapore, Tokyo and Hong Kong are expected to experience more modest increases in hotel prices, increasing by 3.9%, 3% and only 1.3%, respectively.
Additionally, another similar company, CWT, predicted that in 2023, global hotel rates would increase by 8.2%, compared to an 18.5% increase in 2022.
Data provided by technology company Amadeus also reveals that the global occupancy rate in the summer of 2022 was just under 70%, which represents an increase of around five percentage points compared to the same period in 2019.
This data also shows that global hotel and corporate bookings made through all major GDSs at the start of this year were 62% lower than 2019 volumes, but this gap closed during the year, August figures being only 23% lower than 2019 figures.
Around 4.3 million group nights have already been booked for the first half of 2023, according to Amadeus, indicating a rebound in the conference and meetings markets, as confidence in bookings has also increased further.