As the global economy continues to show signs of promise, the hotel industry is enjoying the rebound. According to the most recent Hotels.com Hotel Price Index, the average price of a hotel room rose by two percent in the first half of 2013 compared with the same period in 2012.
“Many of the destinations worst hit by the [economic] downturn have seen hotel prices stabilize, with some experiencing healthy rises,” David Roche, President, Hotels.com, says.
This is clearly good news for hoteliers, but for meeting planners, it means that those “exclusive discounted rates” may not look quite as attractive for attendees who are booking their accommodations. Some U.S. cities saw some major increases in their average daily rates. For example, Honolulu’s ADR increased by 13 percent to $230. Across the board, room rates are getting closer and closer to those that your attendees were used to paying in 2006 before the economic meltdown.
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How the World Impacts Your Room Block
Prices aren’t just increasing based on consumer confidence in the U.S. The emergence of the middle class in the Asia-Pacific region is playing a major role, too.
“Another phenomenon impacting global hotel prices is the huge and rapid rise in number of Chinese international travelers,” Roche says.
“Rapid” might not fully describe the major wave of Chinese travelers. New statistics show that China now represents the biggest spending audience in the world with $102 billion shelled out for global travel.
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Looking Ahead to Securing Low Room Rates for Your Next Meeting
Earlier this year, PKF Hospitality Research predicted that U.S. hotels can expect to see a 7.7 percent increase in revenue per available room in 2014. It’s a trend that all planners should consider as they look toward future meetings.
“Since most conventions and meetings are held in the larger, luxury and upscale properties, this will present a challenge for planners,” R. Mark Woodworth, President, PKF Hospitality Research, says. “Events will have to be booked further in advance, and planners are starting to concede the need to pay higher room rates.”
Looking for more insights into how travel habits and hotel pricing trends will affect you and your attendees? Click here for a full view of Hotels.com Hotel Price Index.