Managers and business travel buyers have struggled to find well-priced accommodation, while hotels grapple with inflation and talent shortages amid a rebound in tourism and events. business, the consultancy said.
“While hotels may continue to benefit in 2023 from pent-up demand for in-person meetings and events, the global economic outlook is unlikely to allow them to achieve rate increases of the same magnitude as in 2022. “, adds the report.
According to the study, rates in London are expected to rise by up to 6.2% next year as hotels face inflationary increases in labor and energy costs. In Paris, room rates can increase by up to 10% as the French capital is set to host events such as the Rugby World Cup and will be in preparation for the 2024 Summer Olympics.
New York is expected to see hotel prices rise 8.2% in 2023, driven by demand for in-person meetings and supported by resilient leisure demand, he said.
Cities like Madrid and Barcelona will increase hotel prices in line with the rest of Europe’s top business cities, with average increases of around 7.2% and 6.6%, respectively.
The company said it was difficult to predict hotel prices after two years of pandemic-related travel disruptions and uncertainty over the global economy, and the data team combined historical transaction data with macroeconomic factors to generate the price predictions for 2023.
(Reporting by Corina Pons; Editing by David Latona and Bill Berkrot)