American Express Global Business Travel’s consulting team has released the Hotel Monitor 2020 report, and it’s good news for meeting planners. Despite an increase in demand for hotel accommodations, lodging prices are expected to climb only slightly as hotel construction and an increase in competition has kept pace with need.
Uncertainty over Brexit as well as considerable hotel building means London hotel prices are predicted to rise only one percent, but inflation in Argentina is expected to send room rates in Buenos Aires skyrocketing a whopping 47 percent.
Incentive planners looking at events in the Middle East will find deals, as lodging will be cheaper, and even Dubai, the host for next year’s World Fair Expo 2020, is not expected to become more expensive for travelers.
In the U.S., planners will see some decreases in costs. According to the report, New York City will see a three percent drop in room rates, and Los Angeles, Boston, and Atlanta prices will rise only one percent. However, U.S. hotel chains will adopt or expand other trends to maintain profits, such as using self-service kiosks, keyless entry, and online check-in to decrease staff and charging for cancellations 72 hours, rather than 24 or 48 hours, before the arrival date. Major brands will look for multi-year MICE contracts to guarantee rooms.
The report also offers seven tips for using data to optimize your room block and business travel planning, including recognizing the difference between the four main types of data—descriptive, diagnostic, predictive, prescriptive—and how to use them.