Hotel prices to rise at a slower pace in major business activity cities in 2023 – report

MADRID, Oct 5 (Reuters) – Hotel prices in most major U.S. cities for business events will continue to rise in 2023 as demand for in-person meetings increases after the pandemic disrupted, but hotel prices are set to worsen as the economic outlook deteriorates will slow down. Express Global Business Travel said in its annual forecast.

Business travel managers and buyers have been dealing with difficulties getting accommodation at great prices, while hotels are grappling with inflation and a talent shortage amid a rebound in tourism and business activity, the consultancy said.

“While hotels can continue to benefit from pent-up demand for in-person meetings and events in 2023, the global economic outlook is unlikely to allow them to achieve the same rate of house price growth as in 2022,” the report added.

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House prices in London are expected to rise 6.2% next year as hotels face inflation in labour and energy costs, the study said. In Paris, house prices could rise by 10% as the French capital hosts events such as the Rugby World Cup and prepares for the 2024 Summer Olympics.

New York hotel prices should rise 8.2% in 2023, driven by demand for in-person meetings and underpinned by demand for flexible leisure, the report said.

Cities such as Madrid and Barcelona will join other major European business cities in raising hotel prices, with average increases of around 7.2% and 6.6% respectively.

After two years of pandemic-related travel disruption and global economic uncertainty, forecasting hotel prices is challenging, the company said, with the data team combining historical transaction data with macroeconomic factors to generate a 2023 forecast. Price forecast.

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Reporting by Corina Pons; Editing by David Latona and Bill Berkrot

Our Standard: The Thomson Reuters Trust Principles.

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