American Express Global Business Travel has released its 11th annual Business Travel Forecast revealing air, hotel and ground transportation prices are expected to be neutral to slightly higher across all regions in 2015. With new hotel supply limited in many major markets, the slight increases in business travel demand expected should put more pricing power in the hands of hoteliers next year, according to American Express.
Additional global hotel pricing predictions include:
- In North America, hotel rates are expected to trend upwards, buoyed by favorable economic growth, increasing demand and a lack of new inventory. Additionally, moderate and upscale hotels continue to explore ways to further differentiate themselves from the competition. Amex is forecasting rate growth for mid-range hotels of 3% to 6% and upper-range hotels 3.5% to 7%.
- Demand from U.S. companies with manufacturing facilities in Latin America will likely help create a seller’s market and contribute to mid- and upper-range hotel property increases across the region. American Express is predicting rate growth for Latin American mid-range hotels to be 5% to 8% and upper-range hotels 5% to 7%.
- Across Europe, the Middle East and Africa, hotel rates are predicted to rise slightly in nearly all countries and categories, as demand steadies. American Express forecasts rate growth for hotels in EMEA at 1% to 6% for mid-range hotels and 0% to 5% for upper-range properties.
- In Asia Pacific, hotel rates across the region are expected to rise minimally across most categories in the coming year. The forecast for rate growth ranges from 0.8% to 3.5% for mid-range hotels and 0.7% to 3.5% for upper-range hotels.