Travel Mgrs. Predict Lower Hotel Rates

UBS Warburg on Friday projected that negotiated hotel rates for 2003 would decline 2.5 percent over 2002, based on a survey of 123 corporate travel managers representing a range of industries and travel spends.

According to UBS lodging industry analyst Keith Mills, travel managers in 2003 will be less likely to use deluxe hotel brands as they seek to reduce travel expenditures. Respondents also indicated that approximately 10 percent of corporate lodging spending has been replaced by greater use of technology, including tele- and videoconferencing. "This, in turn, has resulted in a 5 percent reduction in lodging property profits," Mills said.