MADRID, Oct 5 (Reuters) – Hotel prices will rise in most key cities for business events around the world in 2023, with demand for in-person meetings growing after disruptions from the pandemic, despite a worsening economic outlook, American Express Global Business Travel said in its annual forecast.
Corporate travel managers and buyers continue to face difficulties in finding affordable accommodation, while hotels face inflation and talent shortages and are struggling to cater to tourism and business events, the consultancy said.
“While hotels may continue to benefit from increased demand for in-person meetings and events in 2023, the global economic outlook does not allow them to achieve the same rate of increase seen in 2022,” the report added.
Prices in London are forecast to rise by up to 6.2% next year, the study says, as hotels use labor and labor costs rise. Room prices in Paris could rise by up to 10% as the French capital prepares to host events such as the Rugby World Cup and the 2024 Summer Olympics.
New York predicts that hotel rates will increase by 8.2 percent by 2023, fueled by demand for physical meetings and entertainment.
Cities such as Madrid and Barcelona show an average increase in hotel prices of 7.2% and 6.6% compared to the rest of Europe’s major commercial cities.
The company said forecasting hotel prices has been challenging due to two years of pandemic-related travel disruptions and uncertainty in the global economy, adding that the data team combined historical transaction data with macroeconomic factors to create price forecasts for 2023.
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Reporting by Corina Pons; Editing by David Latona and Bill Burkert
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