Corporate Hotel Rates to Soar 7% in 2016
Corporate hotel buyers are about to see the biggest rate increases in 30 years, says a new report from NYU’s School of Professional Studies.
U.S. companies can expect to pay an average of 6.5% to 7.5% more for hotel rooms in 2016, and to see lots of extra fees on top of that.
That’s good news for hoteliers, of course, as corporate rates represent almost 20% of occupied U.S. room nights and almost 30% percent of U.S. lodging industry revenue.
To hold down costs, the report suggests, buyers are:
- Reallocating their portfolios of hotels to include more upscale, select service and limited service hotels in place of upper upscale hotels and full service hotels.
- Allowing travelers to select hotels outside the list of preferred properties.
- More closely enforce compliance with corporate travel policy.