Rising Hotel Prices Affect International Business Travel

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In the first quarter of this year, compared to the same period of 2023, the number of international hotel reservations worldwide decreased by 19%. These are the conclusions of HotelHub experts based on the analysis of 15 million corporate hotel reservations.

The company noted that the decline represents a “sharp upturn” from the gradual recovery seen in international business travel since the end of the pandemic.

According to analysts, this is due to the continued increase in hotel prices and “persistent inflationary pressures”: the average cost of a room increased by an average of 8% per year, from $164 to $177 per night.

The HotelHub Index showed that average hotel prices in London have risen by 22% and in Paris by 27% over the past two years.

By comparison, rates in New York City have increased by 12% since 2022

At the same time, the share of domestic visits in the total volume of business trips increased: this indicator increased from 52% to 62% during the year.

Experts note that in the first quarter of this year, domestic business trips to Europe have increased in particular. The increase compared to the same period of 2023 was 30%. It turns out that the average duration of international business trips increased by 5.3%. from 2.83 days to 2.98 days, indicating that business travelers are “extending their trips to get more value when it comes to flights.”