GUEST BLOG: LONDON AMONG TOP THREE PLACES IN THE WORLD TO STAY

Global hotel solutions provider HRS has compared average hotel room rates worldwide over the last four years (2011 – 2015) and revealed that despite economic uncertainties during this period, the outlook for the UK hotel industry is largely positive with an overall increase in room rates by 26 per cent.

In fact, London is one of the top three most expensive cities for an overnight stay in the world, costing £141 on average per night, according to the latest figures from 2015. Data revealed rates in the city had increased by 31 per cent during the four years, benefitting from the legacy of hosting major events such as the Royal Wedding and 2012 Olympic Games, making it an even more desirable destination for both business and leisure travellers.

In the UK, London, Leeds and Manchester recorded the biggest increases in average room rates per night between 2011 and 2015. During this period, Leeds almost doubled its cost per overnight stay with a 41 per cent rise and 30 per cent for Manchester.

Top Destinations UK & Ireland	∅ Room rate 1*-5*****      per night 2011 (£)	∅ Room rate 1*-5*****      per night 2015 (£)	Rate development comparison %
London	£108	£141	31%
Edinburgh	£93	£102	10%
Bristol	£81	£97	20%
Manchester	£73	£95	30%
Leeds	£66	£93	41%
Birmingham	£68	£85	25%
Liverpool	£68	£85	25%

New York, Rio de Janeiro and Sydney were the most expensive destinations worldwide on average for overnight stays in 2011. Unsurprisingly, New York has maintained this top position, enjoying a 32 per cent price increase in rates from 2011 (£149) to £197 per night in 2015.

Cities that could be ones to watch over the next couple of years, recording the biggest increase in hotel rates from 2011 to 2015, include Miami at 62 per cent, Mexico City at 52 per cent and Beijing at 43 per cent.

Top Destinations International 1-5***** Hotels

Average room rate for hotel stays in international cities.
Comparison of average rates, based on non-cancelled bookings. Public and corporate bookings.
Period: 01.01.2011-31.12.2015

Top Destinations international	∅ Room rate 1*-5*****      per night 2011 (£)	∅ Room rate 1*-5*****      per night 2015 (£)	Rate development 2015 compared to 2011 in %
New York	£149	£197	32%
Washington	-	£154	-
Tokyo	£115	£129	12%
Sydney	£127	£127	-
Singapore	£109	£125	13%
Miami	£71	£115	62%
Rio de Janeiro	£145	£113	-22%
Dubai	£82	£110	34%
Seoul	£95	£94	-1%
Toronto	£80	£93	16%
Mexico City	£60	£91	52%
Mumbai	£89	£81	-9%
Cape Town	£102	£81	-20%
Buenos Aires	£77	£78	1%
Shanghai	£55	£67	-22%
Beijing	£46	£66	43%
Bangkok	£42	£57	36%
Kuala Lumpur	£43	£50	16%

Jon West, Managing Director of HRS UK & Ireland, commented:  “London has clearly continued to hold its own as a major international destination for travellers. UK hoteliers should find it reassuring that other cities are also benefitting from the uplift in demand.”

“Globally the hotel market has fluctuated massively over the past four years especially with recent global events and ongoing economic uncertainties.  In addition to this, technological advancements are giving business travellers more control over their bookings than ever before so we really would urge travel and procurement managers to review the effectiveness of their travel programmes on a regular basis to ensure they’re getting the best rates possible to make substantial savings for the long-term.”

Written by Jon West, Managing Director, UK and Ireland, HRS. Global hotel solutions provider HRS will be exhibiting at the Business Travel Show on stand B755.

GUEST BLOG: Are travel policies still important?

A number of businesses are taking a fresh look at their travel programmes and policies. This move has primarily resulted from the aftermath of the financial crisis and the ongoing economic challenges many companies face.

They are asking: what is the best fare and what is the best rate? They are no longer asking where they go to get them. Essentially, these questions and the shift in focus are driven by the need to get the most from a travel budget. There is a move to shift the focus from a mandate culture and place greater control at cost centre levels.

At the same time, the amount of choice available to business travellers has grown exponentially. There is an increasingly complex market full of different suppliers, products and services for them to navigate. This has led to much debate as to whether travellers should be 'turned loose' to find their own fares and rates.

So is this the end of the travel policy?

The short answer is no.

In reality, if you want to search hard enough and spend enough time doing it, you are occasionally going to find a lower fare searching on you own. However, there are millions of fares and rates that are available across all networks. Do you really want your travellers spending so much time on non-core activities?

The role of the Travel Management Company is to manage this enormous choice for the traveller, filter it and simplify it. What HRG has seen across our customer base is that they are looking for us to bring in the right content, when and where it is relevant.

This integration with traditional content provides one simple, easy, efficient booking solution that allows travellers to make their transactions quickly, while securing the lowest cost.

What will travel policies look like in the future?

There are a number of key features that travel policies of the future will include. These features will create the right conditions for travellers to make the best possible decisions.

-       Content: In the future content is likely to become more fragmented. The ability to aggregate and filter it all for travellers to see will add value in helping businesses to manage their travel expenditure.

-       Control: Despite the lessening of the mandate authority, travel managers will need to maintain an active point of control.

-       Forecasting: Businesses need travel data. Not only do they want to know how much they have spent, they want to know how much they are going to spend.

-       Duty of Care: Duty of care obligations are crucial and will continue to grow in importance. Businesses must ensure they can find people in times of crisis, provide repatriation services and emergency support for their own travellers.

To conclude, with less emphasis on a mandate and with more focus on control at the cost centre level, travel policies will need to be developed and designed accordingly. By accommodating the desire for a greater level of autonomy and accountability travel managers can create the right conditions to positively influence traveller behaviour while balancing the need to achieve more from their travel budgets.

This blog post was written by Karen Smithson, Director of Client Management - UK, HRG. For more information please visit www.hrgworldwide.com. HRG is exhibiting at the Business Travel Show in February. For a free visitor pass please register at www.businesstravelshow.com.