The latest Corporate Benchmark Report from BSI, a procurement agency focused on accommodation, meetings and events, reveals that despite the reported impact of the Olympic Games on London rates, customer rate increases have been restricted to 1.4 per cent, compared to the 6.4 per cent market increase for hotel rates.
The report also revealed year-on-year customer rate reductions in the majority of core UK customer locations ranging from one per cent to 13 per cent, and year-on-year customer rate reductions in the majority of top global customer locations ranging from two per cent to 11 per cent.
Other key findings, identified through BSI’s own customer transactional data, in conjunction with reported hotel market statistics, include an increase in the total number of nights stayed in hotel rooms in key customer hubs, reflecting greater compliance to customer preferred hotels and a strong customer demand for budget accommodation and alternative properties such as apartments, with 14 per cent off nights booked within these categories.
“Slow economic growth, in conjunction with a growing appetite for cost reduction and an increase in supply within the UK and internationally, should result in an even more competitive pricing environment in core locations in 2013,” says BSI’s Head of Hotel Product, Sam Welch.
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