American Express Global Business Travel just published its Hotel Monitor 2019 and statistics show wide price fluctuation.
"As we enter hotel RFP [request for pricing] season, overarching global and market tendencies will play a critical role in the operational and financial success of travel programs," said Joakim Johansson, vice president of business development, American Express GBT.
"Reviewing how others have adapted to changing business conditions provides an important opportunity to identify best strategies and ensure time and resources are utilized in the most cost-efficient way possible."
The report finds that uncertainty in the global economy is impacting travel policies and demand. Overall, prices are on the rise.
Security and political unrest are expected to be catalysts for the fluctuation of rates globally. Brexit and potential changes to NAFTA are impacting travel and trade activities and travelers are seeking hotels that offer greater security.
One of the regions that are expected to increase prices is the Asia Pacific, which will account for nearly two-thirds of global growth. As GDP rises in the region, so too are hotel rates. A similar situation is occurring in Latin America.
One of the reasons for rate increases is that global supply of hotel rooms is being outpaced by demand. Steady demand is boosting rates in a number of areas that are popular with tourists such as major Europe.
For corporate travel managers, the 2019 Hotel Monitor dissects rates at national, regional and local levels in 150 areas around the country, and a detailed list of hotel rates in cities can also assist in the planning process.
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