Survey: Most Buyers Expect Higher 2012 Hotel Rates, Volumes - Business Travel News

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Survey: Most Buyers Expect Higher 2012 Hotel Rates, Volumes

July 29, 2011 - 12:50 PM ET

By Michael B. Baker

Most buyers expect hotel rates to increase in 2012, and few expect their hotel volume to drop next year, according to an AirPlus International June-July survey of 101 corporate travel buyers in Europe and North America.

Just under half of those surveyed said they expect their negotiated hotel rates to increase between 1 percent and 5 percent, and an additional 8 percent said they expect increases between 5 percent and 10 percent. Almost a quarter, however, said they expect to negotiated rates for 2012 to decrease from this year's levels.

Hotel executives and analysts have told buyers to expect percentage increases in the mid-to-high single digits for next year.

Meanwhile, just under half of respondents to the AirPlus poll said they expect their organizations' total room nights to increase in 2012 versus this year, and about the same amount said they expect budgeted hotel expenses to increase. Less than 10 percent said they expect their hotel volume to decrease, although nearly 20 percent said they plan to lower their spending on hotels in 2012.

Buyers in the study also outlined their strategies for negotiations. A little more than a third said they plan to maintain relationships with their preferred hotel suppliers even if that meant bearing rate increases, while about a quarter said they would be willing to change suppliers if it resulted in lower rates. Only about 7 percent said they planned to explore dynamic pricing models.

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