BTI U.K. Hotel Study: N.Y. Rates Highest In The World
<B> BTI U.K. Hotel Study: N.Y. Rates Highest In The World</B>
By Amon Cohen
New York is not only the most expensive U.S. city for American travelers, it is also the priciest metropolis in the world for corporate visitors from the United Kingdom. The latest survey of global hotel rates from BTI U.K. shows that its customers paid an average room rate of $244.87 in the Big Apple in the first half of 1999.
The BTI U.K. survey is based on actual rates paid by 6,000 clients, including negotiated and promotional tariffs, rather than the published rates used in most surveys.
New York's elevation to pole position came in spite of a slight decrease in its rate from $245.24 in 1998. The reason was that the previous number-one city, Hong Kong, plummeted to 17th place this year in the face of continuing economic recession and oversupply. Hong Kong's average rate fell from $264.81 to $188.14.
The survey does, of course, reflect BTI U.K.'s own buying strength. London was the most expensive city in the Corporate Travel Index (<I>BTN</I>, Feb. 8). In this survey, it is way down at 31st, with an average rate of $179.12, because BTI U.K. has heavy purchasing power in its domestic market. London is also slightly down on last year's rate of $181.16, confirming reports that it has stabilized after five years of heavy increases.
"The top London hotels are reducing their rates at the weekend and even a little during the week, and they are much more open for negotiation," said Ingemar Akesson, director of marketing for BTI U.K. sister agency Bennett BTI Nordic.
With London not figuring highly on this list, the rest of the top 10 after New York consists exclusively of cities outside the Western world. At first sight, it may seem odd that Tblisi and Tashkent are more expensive than Paris and Tokyo. However, only a handful of hotels in each non-Western city has adequate facilities for business travelers and therefore they are able to command a premium.
None of the top 10 is in Southeast Asia. Indeed, Kuala Lumpur is cheapest on the list of 126 cities at $74.43. However, Kuala Lumpur is only 5 percent down on last year and in other parts of the region there are signs of a rate recovery. Tokyo is up 6 percent to $186.73, while Seoul has risen 14 percent to $181.68.
Looking ahead to 2000, Business Travel International COO Mike Platt, said, "There will be a dramatic increase in rates and there will be deals, but more inventory will be shut out from corporates."
After New York, the cities rounding out the top five based on actual room rates paid by BTI U.K. customers are Sao Paulo, $238.94; Baku, $232.10; Moscow, $232.03 and Buenos Aires, $217.66.