June 15, 2024

HotelHub data shows ‘concerning trends’

Companies are sanctioning more domestic travel in place of international trips, with domestic bookings now representing 62% of all trips, up from a 52% share in Q1 2023. International corporate travel bookings have meanwhile declined by 19% on a year over year basis.

These findings are according to HotelHub’s Q1 2024 HotelHub Index, an analysis of over 15 million hotel bookings.

The decline in international travel breaks with the trend of gradual recovery of overseas business travel seen since the end of the pandemic.

This suggests companies remain cautious in an uncertain economic environment and are likely dispatching staff based within a country rather than allocating budget for costlier international trips, says HotelHub.

Growth in domestic business travel is up by 46% in Asia and 30% in Europe. In North America, 81% of stays are now domestic, reflecting a 5% increase compared to Q1 2023.

The average room rate per night grew by 8% between Q1 2023 and Q1 2024 on a global basis, increasing from an average of $164 to $177 per night. In just two years average rates have increased by 22% in London, 27% in Paris and 12% in New York.

There are also signs that business travellers are condensing trips to stay within budget as the average cost of a trip increased by 7% from $414 in Q1 2023 to $442 in Q1 2024. 

In Asia, the average duration of stay has decreased by 8%, and in the Middle East & Africa it has decreased by 11%. However, the average international length of stay has increased by 5.3%.

Paul Raymond, Director of Business Development at HotelHub, said: “On the whole, business travel is still growing but there are some concerning trends in this data. A reduction in international trips is often an indicator of overall business confidence and broader spending in the corporate sector. 

“The rate of inflation may be falling in some areas of the economy, but in hospitality we’re still seeing significant price increases that many corporate travel departments are finding challenging.”

hotelhub.com

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