The Asia Pacific region is predicted to account for two-thirds of global growth in the hotel business, according to the newly released Hotel Monitor 2019 from American Express Global Business Travel.
The report, which includes a 2019 pricing forecast for 150 key cities around the world, also shows that prices in London are expected to stay flat next year. The team behind the report is forecasting a wide range of hotel rate fluctuations across regions in 2019.
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 hotel request for proposal (RFP) season.
It includes a White Paper on accommodations programme optimisation, and flags uncertainties in the market, especially around travel policies and traveller security.
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.
Yet hotel rates are predicted to rise where regional economies are flourishing.
The Asia Pacific region is anticipated to account for around 5.6% GDP growth in 2018 and 2019. The Monitor finds similarly moderate rises in Latin America where the economy continues to improve.
Growing demand for hotel supply often outpaces room availability, the report notes, claiming limited supply growth combined with steady demand is boosting rates in many European destinations.
However, in the Middle East, over-supply 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 Joakim Johansson (pictured), vice-president of business development, 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,” he added.
Ideas and techniques to help effectively capitalise on these insights and appropriately optimise accommodation programs are available in GBT’s Smarter Buying white paper.