The TMC forecasts an average increase of 6.8% in global hotel rates in 2024.
Although the pace of recovery shows signs of slowing, demand will continue to outstrip available supply in many markets.
Although many projects are underway to increase the number of hotel rooms, these will take time to become operational, and development will vary significantly by market.
Additionally, hoteliers’ concerns about occupancy have given way to a greater focus on average daily rates and revenue per available room.
Instead of trying to fill every room, hotels seem more willing to accept lower occupancy, limiting availability and then charging higher rates.
With inflation high in many countries, this change in priorities has the added benefit of reducing hotel operating costs. Lower occupancy should reduce, for example, housekeeping costs.
“Hotels have adopted more sophisticated revenue and yield management techniques in recent years,” says Jorge Cruz. “It is increasingly difficult for business travelers to find available rooms at preferential rates.
While it is important for buyers to negotiate favorable rates, it is equally important that those rates are available when needed. Otherwise, they end up paying market rates, which will increase the cost of their hotel programs in 2024.”
2023-12-20 23:54:41
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