AMEX reports rising hotel rates in Q2 2011

American Express Global Business Travel released business travel pricing trends for the second quarter of 2011 from its eXpert insights Business Travel Monitor, its long-term price trending index for domestic and international trips originating in North America. The BTM data demonstrates continued rate increases for flights and accommodations as suppliers continue to take advantage of the return in demand and other market factors to raise rates.

Pricing Snapshot – Q2 2011 Business Travel Pricing Trends:

Average domestic hotel rates increased to $156 in Q2 2011
•    A three percent increase from $151 in Q2 2010
•    A four percent increase over the previous quarter, $150 Q1 2011

Average international hotel rates increased to $258 in Q2 2011
•    An eleven percent increase from $232 in Q2 2010
•    An eight percent increase over the previous quarter, $238 Q1 2011

Trending Insights – Hotels
Recovery in the hospitality industry continues with many companies paying more for their travelers to book accommodations.

“As hotel new development pipeline slowed with the uncertainty in the economy, hoteliers have benefited from more favorable demand to supply ratios by and large in 2011,” noted Manning. “In addition, many hoteliers have renewed focus on the business traveler as this more lucrative sector of travel has picked up. As hoteliers have followed the supply trend of offering more fee-based services however, savvy sourcing professionals are getting more of these included in with the higher base rates for the business traveler, which helps businesses have more predictability in travel-related costs. With this backdrop, companies should focus their approach to negotiations with hotel suppliers for 2012 to obtain the best overall value, rather than simply the lowest base rate.

"As hotel market pricing is always about location, location, location, the recovery for certain areas has been particularly strong driving hotel rates in recently popular destinations up much more rapidly. Travel buyers will need to rely heavily on volume and the ability to deliver market share to secure competitive rates in these regions, while meeting planners will want to evaluate multiple destinations to avoid the biggest price increases in cost per attendee per day next year.”
 
U.S. Cities with Highest Hotel Rate Increases in Q2 2011 vs. Q2 2010:

City

 

 

 

 

Q2 2010

 

 

 

 

Q2 2011

 

 

 

 

Percent
Change

San Francisco, CA

 

 

 

 

$176

 

 

 

 

$219

 

 

 

 

24%

Philadelphia, PA

 

 

 

 

$171

 

 

 

 

$196

 

 

 

 

14%

Seattle, WA

 

 

 

 

$148

 

 

 

 

$166

 

 

 

 

12%

Cincinnati, OH

 

 

 

 

$147

 

 

 

 

$163

 

 

 

 

11%

Minneapolis, MN

 

 

 

 

$132

 

 

 

 

$143

 

 

 

 

8%

Virtual Event

Hotel Optimization Part 3 | Available On Demand

With 2020 behind us and widespread vaccine distribution on the horizon, the second half of the new year is looking up, but for Q1 (and most likely well into Q2) we’re very much still in the thick of what has undeniably been the lowest point of the pandemic. What can you be doing now to power through and set yourself up for a prosperous 2021 and beyond? Join us at Part 3 of Hotel Optimization – A Virtual Event, now available on demand, for expert panels focused on getting you back to profitability.