Hotel Prices Forecasted to Increase in 2023 in Most European Cities
A recent report by American Express Global Business Travel has revealed that hotel prices are set to rise over the next year, with European cities that will experience the largest increases.
Meanwhile, the Travel Management Company’s (TMC) 2023 Hotel Rates Report highlighted that hotels face many issues that will drive up prices, including staff shortages, dealing with subdued demand and rising inflation, SchengenVisaInfo.com reports.
According to American Express GBT, hotel prices have increased significantly this year, especially in destinations that lifted their travel restrictions at the beginning of 2022, which also led to an influx of visitors mainly for leisure.
In addition, the TMC forecast says that the EU and the Americas region will experience the largest increases in hotel rates during 2023, compared to cities in the Asia Pacific, which will see a lower increase.
Among the destinations that will experience a higher price increase in 2023 are the following:
- Paris + ten per cent,
- Stockholm + nine per cent
- Dublin +8.5 per cent
Whereas, London, which reached a record rate of hotel price increase during this summer, is again expected to increase hotel prices by another 6.2 per cent next year. At the same time, Amsterdam and Frankfurt will also see a 7.5 per cent increase in hotel price rates in 2023.
Yet, the biggest increases that will be felt outside of the EU are in cities like New York with +8.2 per cent, Sao Paulo with +7.7 per cent, San Francisco with +7.3 per cent and Dubai with seven per cent.
As for the top business travel destinations in Asia, Singapore, Tokyo and Hong Kong are expected to see more modest increases in hotel prices, rising by 3.9 per cent, three per cent and just 1.3 per cent, respectively.
Moreover, another similar company, CWT, has predicted that in 2023 global hotel rates would increase by 8.2 per cent compared to an increase of 18.5 per cent in 2022.
Data provided by technology firm Amadeus also reveals that worldwide occupancy in the summer of 2022 was just below 70 per cent, representing an increase of around five percentage points over the same period in 2019.
Such data also shows that global hotel and corporate bookings made through all major GDSs at the start of this year were 62 per cent below 2019 volumes, but this gap closed during the year, with August figures only 23 per cent behind 2019 figures.
According to Amadeus, around 4.3 million group nights have already been booked for the first half of 2023, which indicates a rebound in the conference and meeting markets, given that confidence in bookings also increased further.