PKF Hospitality Research projects 2012 will be a "favorable year of growth" for U.S. hotels, with average rates increasing by 4.7 percent.

The bulk of the increases will reside in the upper tiers, where occupancies will be above 70 percent, but hotels in all tiers should have rate growth above their long-term average levels, according to the firm. Even though it projects demand growth will slow next year, PKF said rate increases should continue in 2013, increasing by 5.3 percent year over year.

Most business travelers do not expect to cut down on their number of trips next year, according to a Deloitte study.

Business Travel News

Only 15 percent of the 1,000 business travelers surveyed in September said they expected to take fewer trips in 2012 than they did in 2011. The majority, almost 63 percent, said they expected their travel levels to remain steady, while 22 percent said they would be taking more trips in 2012.

STR: October Global Hotel Rates Climb

by Michael B. Baker

Hotel rates during October increased year over year in all four global regions, according to STR Global.

Rates in the Americas were up 4 percent, including a 3.9 percent rate increase in the United States. Several U.S. markets had double-digit percentage rate increases, including San Francisco (19.4 percent), Miami (12 percent,), Nashville (11.9 percent) and St. Louis (11.4 percent). Rates fell slightly in Atlanta and Washington, D.C.

In Europe, the largest rate increases occurred in Stockholm (23.3 percent), Cologne, Germany (18.7 percent), and Lisbon (18.2 percent). Rates in Cardiff, Wales, dropped 20.2 percent, the largest decrease in the region.

While October occupancy in the Asia/Pacific region dropped to 70 percent, a 2 percent decline, rates increased by 8.4 percent. In terms of local currency, the largest rate increases occurred in Hong Kong (20 percent) and the Indonesian cities of Bali (18.3 percent) and Jakarta (18.2 percent). Rates decreased by 15.3 percent in Shanghai and by 10.8 percent in New Delhi.

Occupancy decreased in the Middle East/Africa region to 63.4 percent, a 3.4 percent drop, but rates were up 7.3 percent compared with October 2010. The largest rate increases were in Saudi Arabia. Rates in Riyadh increased by 9.2 percent and in Jeddah by 8.7 percent. Rates in both Abu Dhabi and Cairo decreased by about 13 percent.

Link Roundup

Top news in the world of business travel. Hotel edition: 

Virgin Hotels Announces First Property

Optimistic forecast bodes well for hotel sales pros

Elevating the Role of the Revenue Manager

First Cornell Hospitality Design Roundtable Focuses on Rapidly Expanding Boutique Hotel Segment

US Hotels Report Strong RevPAR increases | STR Reports

What’s Important to Today’s C-suite Traveller? 

Survey: Four Of Five Not Tracking Ancillary Fees

August 17, 2011

by Michael B. Baker 

Business Travel News 

Most travel buyers do not track ancillary air or hotel fees, though many are making it a priority to do so within the next year, according to a study of 651 travel managers, mostly in the United States, conducted by the Global Business Travel Association Foundation and Egencia.

Only 21 percent of respondents indicated they are tracking ancillary fees, although 41 percent said they plan to do so in the next 12 months. Most buyers who track them do so through expense management tools, though about half also do so through their corporate card supplier.

The survey indicated that most buyers are willing to reimburse travelers for bag fees and itinerary changes but not for other charges. Only 47 percent reimburse for in-flight meals, and only 35 percent reimburse for in-flight wireless Internet use. Very few reimburse for such amenities as preferred seating, extra legroom and priority boarding.

On the hotel side, most buyers reimburse for parking, Internet and airport shuttle use, but less than a quarter said they reimburse travelers for late checkout or early check-in fees. Only about a fifth said they reimburse for fitness center usage.

The survey also indicated slight tightening of compliance rules compared with a similar 2010 survey. Most buyers (61 percent) said their travel policy is a guideline; 36 percent said their policies were mandated, a percentage point higher than in the 2010 survey.

Additionally, 22 percent of buyers said travelers face possible nonreimbursement if they violate policy, up from 19 percent the previous year. Even so, 56 percent of buyers said policy violations warrant "slap-on-the-wrist" reactions, such as email directives to adhere to policy.

More buyers are enacting air travel booking-window requirements, according to the survey. About a quarter require travelers to book at least seven days in advance of travel, compared with 18 percent in 2010. Buyers with no advance purchase requirements or designated timeframe for air travel booking, meanwhile, dropped from 38 percent to 33 percent.

Buyers also continue to increase restrictions on premium-class air travel. Sixty-nine percent surveyed said they limited premium-class travel during the past two years, up from 66 percent who said so in 2010. Even so, fewer buyers are taking the hardest line against it, with only 42 percent saying they do not allow premium-class travel under any circumstances, down from 47 percent who said so last year.

Buyers are less restrictive in the hotel category, with only 28 percent saying they've updated policies to limit travel to certain hotel tiers during the past two years.