Corporate negotiated hotel rates for 2015 are trending higher than previously forecast in several global regions, according to data provided to BTN by BCD Travel's Advito consultancy.
North America, Europe and Africa all proved more challenging than expected for travel buyers in hotel rate negotiations as demand strengthened in those regions, said Marwan Batrouni, Advito's hotel practice leader. In North America, corporate hotel rate increases are averaging 6 percent to 7 percent year over year, compared with an earlier forecast of 3 percent to 4 percent. In Europe, corporate hotel rates increased 2 percent to 4 percent, higher than the previous forecast of 1 percent to 3 percent.
The biggest change from previously forecast rates was in Africa, where Advito now projects rate increases between 7 percent and 9 percent, up from its earlier forecast of 2 percent to 4 percent.
"The primary country that drove that increase was South Africa, where we're seeing some major pickup in overall demand," Batrouni said.
Buyers are faring better than expected in the Middle East, however. Advito projects corporate hotel rates for 2015 there are up 2 percent to 4 percent year over year, down from its earlier forecast of 3 percent to 5 percent. Overall demand is down in the region due to political instability, Batrouni said.
Corporate hotel rate increases in the Asia/Pacific region (2 percent to 4 percent) and Latin America (5 percent to 7 percent) fall in line with Advito's earlier forecast, he said.