2017 – A Year to Watch | the HRG 2017 Hotel Survey
With Moscow retaining its title as the most expensive city for the 13th year running, the exchange rate movements causing significant changes in room rates and three cities emerging as ones to watch this year, there is no doubt that 2017 could deliver many benefits to travel managers, according to the results of the 2017 HRG Hotel Survey.
“It’s difficult to predict what may happen to room rates in 2017,” comments Margaret Bowler, Director of Global Hotel Relations at HRG. “But one thing is for sure, it is going to be an uncertain year.”
- 27 of the top 50 most expensive cities have seen an increase in average room rates (ARR) in GBP, up from only 21 in the 2016 survey. 21 cities have experienced a decrease in ARR this year and seven cities saw rates remain the same as 2016.
- Globally ARR in GBP grew in all regions by the end of 2016. At the beginning of the year only two regions – Europe and MEWA showed growth in room rates.
- Exchange Rates – the fluctuations seen in global exchange rate markets last year had a profound effect on the price of hotel rooms in many of the top 50 cities.
- Cape Town, Edinburgh and Seattle are all cities to watch. All three cities have a number of new hotel supply coming into the market in the year ahead.
“We are advising clients to ensure their hotel programme is well structured. Ideally travel managers need to be able to review their programme on a quarterly basis. This will enable them to take advantage of fast moving markets and bring down costs mid-programme,” continues Margaret Bowler.
“2016 has been a year of change and that theme of continual change will be a common thread throughout this year as well. Travel Managers will have more influence and with the right mindset 2017 is definitely a year to watch,” Margaret Bowler concludes.
Read the full report here.
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