Business travellers want more shared working spaces, finds report

Hotel Monitor 2020 highlights growing role of technology and rise of non-traditional accommodation options.

Technology is shaping major change in the hotel industry, according to the Hotel Monitor 2020, published by American Express Global Business Travel (GBT). 

The report identifies key areas where technology and data insights are affecting corporate hotel booking, and looks at how organisations are responding.

There is also a growing tendency of the major hotel brands to invest in new lifestyle formats to attract modern business travellers. These properties offer shared working spaces and a less formal environment than might be found in more traditional corporate travel hotels.

Johansson said: "For several years, GBT has been charting the rise of the modern business traveller, who wants a more informal, flexible and digitally smart environment to work and rest. 

"Hotel providers, both big global groups and more local chains, are responding to this need with new hotel formats or serviced apartments. Travel managers need to be ready to accommodate this emerging traveller preference within their managed programmes."

Price rises

The Hotel Monitor 2020 also predicts that hotel prices in most key cities will experience only modest rises in 2020. A global boom in hotel construction is increasing the supply of guest rooms just as international trade tensions put a dampener on demand: together, these factors will restrict the ability of hotels to raise room rates in many business destinations.

In Europe the report forecasts small room rate rises across main business cities as low growth and uncertainties about Brexit and the general global economic outlook take their toll on demand. 

On the supply side, hotel development is at a record high. Germany is leading the development boom with 379 projects in the pipeline. The UK follows closely behind with 281 hotels in the works. London will see a further 10,000 new rooms open in 2019 and 2020.

In the United States, flat occupancy and a full pipeline of rooms in construction will drive competition and limit the ability of hotels to raise prices. 

Canada is more likely to see rates rise, thanks to a relatively strong economic performance and slowing capacity growth. Chicago, San Francisco and Toronto will see the biggest increase in room rates (5%, 4%, 4% respectively). In contrast, guestroom rates for New York are expected to decrease by 3% as 29,000 new rooms become available over the coming months.

In Asia Pacific the hospitality industry is growing rapidly across the region, with thousands of additional beds in key cities every year. Despite the added capacity, the sustained demand in these growth economies means rates are likely to increase. 

For example, Bangalore and Tokyo will see rates increase by 5% and 4%, respectively. Domestic travellers are increasingly filling hotel beds, compensating for any falls in international visitor numbers stemming from a less optimistic global economic outlook.

 

For more features and breaking news sign up to C&IT Magazine's daily News Tracker.

Have you registered with us yet?

Register now to enjoy more articles
and free email bulletins.

Register now
Already registered?
Sign in
Case study: DHL's employee of the year event in San Francisco

Case study: DHL's employee of the year event in San Francisco

Part five of our State of the Industry: Corporate Report is an in-depth look at DHL's big three-day event for its staff.

5 hotels for inspiring incentives in Italy

5 hotels for inspiring incentives in Italy

Our pick of elegant Italian getaways for exciting activities, captivating cuisine and stunning scenery.

UK businesses spending 22% more on incentive travel

UK businesses spending 22% more on incentive travel

Research also finds increased investment in employee experiences worldwide, in response to concerns for wellbeing.

How to use live events to revitalise a brand

How to use live events to revitalise a brand

Any product can be given a new lease of life with the right kind of event, says UKSV's Neil Coombes.

Popular and emerging destinations for corporate events

Popular and emerging destinations for corporate events

Part four of the State of the Industry: Corporate Report asks which cities are favoured by event planners.

In pictures: C&IT US Forum 2019

In pictures: C&IT US Forum 2019

Event planners from North America came to Chewton Glen for two days of meetings, content sessions and activities.

Case study: Avon's Circle of Excellence 2019

Case study: Avon's Circle of Excellence 2019

Venues and Events International organised a 'once in a lifetime' trip to Monaco and the Champagne region of France.

New client account manager for Brands at Work

New client account manager for Brands at Work

With seven years of events experience, the agency's most recent hire will develop new client relationships.

The top challenges for corporate event planners

The top challenges for corporate event planners

Part three of the State of the Industry: Corporate Report finds the biggest hurdles include measuring the ROI of events.

Dear C&IT: Venues must be more reasonable

Dear C&IT: Venues must be more reasonable

Charging significantly more for special dietary requests is bad practice, argues Inntel's Douglas O'Neill.

LATEST JOBS