Buyers should expect most domestic hotel rates to hold steady or increase slightly in 2009, although the Middle East and Asia will continue to be challenging markets for rate negotiations next year, according to a preliminary forecast released to clients today by BCD Travel.
The forecast, a preview to BCD's annual industry forecast, which will be published next month, said that on average, 2009 North American hotel rates compared with 2008 would increase by up to 3 percent. In high-demand cities, that increase would land between 4 and 6 percent, according to BCD.
This largely jibes with a forecast released last month by Carlson Wagonlit Travel, which said buyers should expect average increases in the 2 percent to 3 percent range this year
(BTNonline, Sept. 2).
Internationally, BCD predicts rate growth to be stronger. The agency expects rates in the Middle East to increase between 15 percent and 25 percent and in most Asian markets by 10 percent to 20 percent, although increased supply in China and India will moderate growth there.
In Europe, BCD anticipates growth to be between 4 percent and 8 percent. Latin America will see increases between 10 and 15 percent, according to BCD, but growth will be nearly flat in some of its markets, including Mexico, Brazil—excepting some secondary cities—and Central America.