TripBam sees global hotel rates stabilizing
Global hotel rates have fallen since early June as slowing demand from leisure travelers has helped to depress business prices, particularly in “primary markets that see a strong mix of business and leisure travel.” convenience,” according to a new report from repurchase platform Tripbam.
The company’s September 2022 market snapshot report showed global market hotel rates were down 6% from its June report.
TripBam said it expects “corporate bookings to continue to surge globally in the fall as more businesses ramp up travel and offsite meetings.”
Global market hotel rates are “10.6% higher today than they were during the same period in 2019,” according to the report.
TripBam added that rates are likely to rise again for businesses “due to continued pent-up demand from less price-sensitive transient business travel, room availability issues due to understaffing, as well as rising costs of goods, labor and energy”.
With today’s high hotel rates, “static negotiated rates are proving more valuable than dynamic discounts,” according to the report. Business travelers book static negotiated rates 31% of the time, which is “on par” with the second quarter of 2022, but less than the 43% share in the third quarter of 2019, according to TripBam.
TripBam’s Business Travel Index, which incorporates a combination of business travel rate and volume on an ascending 100-point scale set at 2019 levels to measure the industry’s recovery from Covid-19, recorded a third-quarter “business travel health score” of 79 out of 100, down from a score of 67 in the June report.
The report uses TripBam customer data extracted over a 12 month period. Reservation data only covers corporate reservations of its customers.