Forecasting hotel rates for 2009
Published: 19 Dec 2008: A corporate travel management company in the US has identified a shift towards lower rates for 2009 at 3, 4, and 5 star hotel properties both domestic and international.
As per a survey of over 400 properties conducted by Ovation Travel Group, on average, properties have lowered their rates by 4.31 percent compared to 2008.
Ovation surveyed over 400 hotel properties worldwide and identified the following trends:
- Domestically, 37.1 percent of properties lowered their rates compared to 2008 and 38 percent of properties maintained the same rates as in 2008. Of the domestic properties that lowered their rates, rates decreased on average 10.2 percent.
- The overall domestic average was a decrease in rates of 3.2 percent in 2009 compared to 2008.
- Internationally, 35.6 percent of properties lowered their rates compared to 2008 and 27.1 percent of properties maintained the same rates as in 2008. Of the international properties that lowered their rates, rates decreased on average 11 percent.
- The overall international average was a decrease in rates of 4.67 percent in 2009 compared to 2008
- When combining domestic and international, the average rate change in 2009 was a decrease of 4.31 percent compared to 2008.
"These downward trends are not surprising when you consider the current state of the global economy," said Paul Metselaar, chairman and CEO, Ovation Travel Group.
"Hospitality industry research groups have been predicting a decrease in 2009 hotel rates and revenue for a while now; what we were able to do internally was survey over 400 properties worldwide with whom we have strong vendor relationships and put real numbers to the 2009 trend. Hopefully these lowered rates will serve as something of a relief to our clients´ pocketbooks and help to curb travel costs at this time when belt-tightening has become standard travel policy for many of our corporate clients," said Metselaar.