The Hotel Monitor 2019, published by American Express Global Business Travel (GBT), finds that geopolitical factors along with global, regional and local economics driving a diverse range of conditions for those negotiating hotel rates in key business destinations.
The first in a series of Monitor reports, Hotel Monitor 2019 was created by the Global Business Consulting team at GBT to support buyers ahead of the RFP season.
The report includes a 2019 pricing forecast for 150 key cities around the world, plus a white paper on accommodations programme optimisation.
Here are Asia-Pacific highlights:
Asia-Pacific economies are expected to grow by around 5.6% in 2018 and 2019, accounting for nearly two-thirds of global growth.
Demand continues to rise across the Asia-Pacific region, in particular India and China. This is creating a changing travel dynamic across the region, and room availability can be a challenge in popular locations such as Singapore, Hong Kong, Sydney, Tokyo and Bangkok.
New hotel builds are keeping pace with increased demand, meaning rates remain favourable to buyers in most locations. Overall, room rates should continue to increase moderately through 2018, although this will vary city by city.
Meanwhile, these are the report’s global highlights:
Global uncertainty impacting travel policies and demand
Traveller security and political unrest are expected to be catalysts for significant rate fluctuations globally, and demand for more security-compliant properties is growing – particularly in upscale hotels. Global policy trends, such as the impending Brexit, and changes to the NAFTA trade agreement, are also expected to impact trade and travel activities.
Hotel rates rising alongside flourishing regional economies
The Asia-Pacific region is anticipated to account for nearly two-thirds of global growth, with around 5.6% GDP growth in 2018 and 2019. This is reflected in projected hotel rate increases, and the Monitor finds similarly moderate rises in Latin America where the economy continues to improve.
Hoteliers striving to keep pace with increased demand
Globally, growing demand for hotel supply often outpaces room availability. Limited supply growth combined with steady demand is boosting rates in many European destinations.
However, in the Middle East, oversupply and other factors are pushing prices down in some Gulf states. North American hoteliers report increases in bookings and revenues, partly driven by strong business travel and group growth; rates are predicted to rise across the continent.
“As we enter hotel RFP season, overarching global and market tendencies will play a critical role in the operational and financial success of travel programmes,” said Harris Manlutac, head of global business consulting APAC, 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 utilised in the most cost-efficient way possible.”
The Hotel Monitor 2019 is the first of a regular Monitor series: future editions will analyse air and ground transport, starting later this year and in 2019.
Comprehensive details and analysis of factors impacting hotel rates at a national, regional and local level in 150 key cities can be found in the 2019 Hotel Monitor report and the 2019 Cities Forecast.