According to American Express Global Business Travel’s (Amex GBT) Hotel Monitor 2024, hotel rates are expected to rise globally in 2024, despite a potential softening in leisure travel demand. Based on an analysis of hotel transactions and IMF economic data, the forecast predicts rate increases of up to 17.5% in certain cities, including 8.4% in Shanghai, 7.5% in Singapore, and 4.9% in Sydney.
These increases align with local inflation trends and follow the significant price jumps in 2022 and 2023 due to increased travel post-pandemic. The report notes a shift in traveler behavior, with the rise of flexible, hybrid, and remote work models leading to increased weekend corporate travel and longer business trips combining leisure activities.
Hotel operators are adjusting to rising costs, particularly staff wages, by limiting inventory to address staffing shortages, impacting the traditional link between rates and occupancy. Corporations may find opportunities to negotiate better deals in 2024, with a focus on prioritizing negotiations in frequently visited hotels and cities.
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