Bengaluru and Hyderabad hotel markets expected to register 4% rate growth
The Hotel Monitor 2019, published by American Express Global Business Travel (GBT), finds geopolitical factors along with global, regional and local economics driving a diverse range of conditions for those negotiating hotel rates in key business destinations. As per the report, Indian hotels are expected to gain rates by an average 2% points pan India in 2019.
The report includes a 2019 pricing forecast for 150 key cities around the world, plus a white paper on accommodations programme optimisation.
While the main gateway cities of Delhi and Mumbai are expected to gain an average rate growth of 2%, cities like Bengaluru and Hyderabad are expected to surpass the national average and register a rate growth of 4% points. While Pune market is forecasted to remain stagnant in terms of rates, Chennai is expected to lose 3% in terms of rates.
The first in a series of Monitor reports, Hotel Monitor 2019 was created by the Global Business Consulting team at GBT to support buyers ahead of the hotel request for proposal (RFP) season.
Among the reasons for sharp rate fluctuations, the GBT report attributes the existing global uncertainties impacting travel policies and demand in 2019. Traveller security and political unrest are expected to be catalysts for significant rate fluctuations globally, and demand for more security-compliant properties is growing – particularly in upscale hotels. Global policy trends, such as the impending Brexit, and changes to the NAFTA trade agreement, are also expected to impact trade and travel activities.
The Asia Pacific region is anticipated to account for nearly two-third of global growth, with around 5.6% GDP growth in 2018 and 2019. This is reflected in projected hotel rate increases, and the Monitor finds similarly moderate rises in Latin America where the economy continues to improve.
“As we enter hotel RFP season, overarching global and market tendencies will play a critical role in the operational and financial success of travel programs,” said Harris Manlutac, Head of Global Business Consulting APAC, American Express GBT. “Reviewing how others have adapted to changing business conditions provides an important opportunity to identify best strategies and ensure time and resources are utilised in the most cost-efficient way possible.”
As per the Hotel Monitor 2019, the highest rate growth in APAC is expected from New Zealand (9%) followed by the Philippines (5%), Indonesia (3%), etc. While Vietnam hotel market is expected an average decline of 3% in rates, South Korea as a hotel market will see a marginal dip of 1% in rates, the report says.
