HotelHub, a leading accommodation booking specialist, has announced a moderation in global hotel rates for key business travel destinations. The average room rate in the second quarter of 2024 increased by 3.6% compared to the previous year, a significant slowdown from the 9.6% rise observed in the same period of 2023.
European cities saw an average nightly rate of $176, while North America remained the most expensive region at $218. While rates in major commercial centres remain elevated, the year-on-year increases have been diminishing.
New York experienced a 5% increase in hotel rates to $432 per night, down from a 12% rise in the first quarter. London saw a 7.5% increase to $330. Cities like Stockholm, Chicago, and Paris experienced negligible changes, although Madrid saw a 20% surge.
Despite economic and geopolitical uncertainties, business travel has shown resilience, with HotelHub reporting a 7% increase in booking volumes. Paul Raymond, Director of Business Development, expressed optimism about the slowing rate growth but cautioned about the global economic climate and the upcoming US election.
Booking trends have also evolved, with business travellers making earlier reservations. The average booking lead time increased to 16.7 days in Q2 from 14 days in 2023. Domestic bookings were made 15 days ahead, while international bookings were made 20.75 days in advance.
The average length of hotel stays has remained relatively constant at 2.5 days since 2022, reflecting the influence of hybrid work models. Domestic bookings accounted for 69% of HotelHub’s bookings, although this was slightly lower in Europe at 62%.
European cities dominated the most booked destinations, with London leading the list followed by New York, Paris, Stockholm, and Rome. The stabilisation of hotel prices and the resurgence of business travel indicate a positive outlook for the hospitality industry.
