Hotel Room Rates Projected to Increase Worldwide in 2024

Global hotel rates are expected to increase by 6.8 percent on average in 2024, according to the latest outlook published by BCD Travel.

"Even as the pace of recovery shows signs of slowing, demand will continue to outpace available supply in many markets," said BCD Travel. "Although numerous projects are underway to increase the number of hotel rooms, these will take time to come online, and development will vary greatly by market."

"In addition, hoteliers’ concerns about occupancy have given way to a sharper focus on average daily rates and revenue per available room."

According to the experts, rather than trying to fill every room of the property, "hotels may be more willing to accept lower occupancy, limiting availability and then charging higher rates."

BDC Travel points out that fewer guests can lower hotels' operating costs, including housekeeping services, amid today's high inflation.

"Hotels have adopted more sophisticated techniques for revenue and yield management in recent years," BCD's executive vice president of Global Sales & Marketing Jorge Cruz said in a statement.

"Available rooms at preferred rates have been increasingly more difficult for business travelers to find. While it's important for travel buyers to negotiate good rates, it’s equally important for those rates to be available when needed. Otherwise, they end up paying market rates, which will increase the cost of their hotel programs in 2024."

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