Rise in global hotel rates outpacing expectations, U.S. hotels continue relying on added fees in 2016, finds update to Advito 2016 Industry Forecast
CHICAGO, December 8, 2015 – Corporate travel departments should expect to pay more for hotels in 2016 than was projected just three months ago, according to analysts at global business travel consultancy, Advito. Rates in five of seven regions are now expected to climb faster than projections from September indicated — with increased estimates in eight European markets.
Rising hotel rates is one of a handful of key trends emerging in the final weeks of 2015 that could affect corporate travel buying decisions. Potential savings from managing corporate travel effectively is particularly enticing to companies needing to balance savings with talent management and to attract qualified workers to job openings.
Other findings in Advito’s December update to the 2016 Industry forecast include:
- Low oil prices should curb any large hikes in airline fares next year
- U.S. hotels will continue tacking on fees for Internet, early check-in and other amenities
- Global hotel supply will become more concentrated as major chains like Marriott and Starwood consolidate
- Airline fuel surcharges will continue falling more in line with actual jet fuel prices
Advito’s annual Industry Forecast and quarterly updates help corporate travel buyers establish cost baselines for negotiating discounted corporate rates with travel suppliers. In addition to publishing its findings on global airline fares by class and hotel rates by key markets, Advito also educates corporate travel buyers to emerging trends in travel technology, pricing and marketing that affect travel program costs and effectiveness.
The Advito 2016 Industry Forecast, released in September, features special sections on Travel risk and security, Airbnb, hotel program innovation and Lufthansa’s distribution cost charge. Advito’s trusted advice on travel risk and security has been of particular interest to travel managers following terrorist attacks in November on civilians in Paris.
Advito is the travel industry’s most progressive consultancy, enabling procurement leaders to modernize their approach to managing the travel and meetings spend category. Led by a unique team of multi-disciplinary experts and thought leaders, we work with both clients and suppliers to push the boundaries of traditional air and hotel sourcing and strategic meetings management for higher program returns. We provide advisory, procurement and outsourcing services in the area of corporate travel sourcing, expense and meetings management, along with RFP development and management; benchmarking and vendor management services. We minimize our clients’ travel spend and maximize their travel program value in a data-rich, consumer empowered world. Headquartered in Chicago, Advito operates in key business markets around the world. For more information, visit www.advito.com.
About BCD Travel
BCD Travel helps companies travel smart and achieve more. We drive program adoption, cost savings and talent retention through digital experiences that simplify business travel. Our 13,000 dedicated team members service clients in 170+ countries as we shape a sustainable future for business travel. For more information, visit www.bcdtravel.com.