Most North American corporate travel buyers are bracing for
negotiated hotel rate increases in 2014, though few expect increases of more
than 5 percent, according to an AirPlus International survey of 169 corporate
travel buyers.
About two-thirds of respondents, surveyed in August and
September, said 2014 negotiated hotel rates would be higher than 2013 rates. Slightly
more than 30 percent of all respondents said rates would be up 1 percent to 2
percent, and a bit less than 30 percent said rates would be up 3 percent to 5
percent. Only 5 percent said they expected their corporate rates would increase
more than 5 percent.
"Supply and demand trends in major business markets
have favored suppliers in recent years, and 2014 will be no exception,"
AirPlus wrote in the report. "The tight lending environment in North
America has dampened the ability to build new properties, and major brands have
been reticent to invest."
Of those buyers expecting an increase, about two-thirds said
their company's hotel budget also would increase. Twenty-eight percent said
their budgets would be the same in 2014, and 7 percent said their budgets would
decrease.
About a quarter of total buyers surveyed said their rates
would stay the same, and about 8 percent expect some level of decrease in their
negotiated hotel rates.
Almost 60 percent of buyers also said their companies' total
hotel room nights would increase in 2014. About 33 percent projected their room
night volume to be the same as 2013, and about 9 percent said their volume
would decrease.
Most buyers also are not looking to increase their preferred
hotel set in 2014, according to the survey. About 57 percent said their number
of preferred hotels would remain the same as 2013. About 31 percent said they
would have more preferred hotels in 2014, and 12 percent said they would have
fewer.