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
Global travel trends revealed in Amex 2020 hotel predictions

Global travel trends revealed in Amex 2020 hotel predictions

Prices in 150 key cities facing travel buyers when budgeting for MICE programs, according to Amex GBT.

Royalton Grenada Resort to open March 2020

Royalton Grenada Resort to open March 2020

New resort and spa will be the largest on the Caribbean island of Grenada with 269 suites.

Northern Irish treasures: The best hotels, venues and activities

Northern Irish treasures: The best hotels, venues and activities

From bustling Belfast to the rugged shores of Ballintoy, Northern Ireland is full of iconic delights.

How mental health first aiders can spot workplace exhaustion

How mental health first aiders can spot workplace exhaustion

Awareness of the early signs of burnout can prevent problems further down the line, says Stress Matters' Laura Capell Abra.

Why China has become one of ICCA's top 10 destinations for meetings

Why China has become one of ICCA's top 10 destinations for meetings

Ahead of IBTM China, ICCA's Noor Ahmad Hamid says that the Chinese MICE industry is booming.

8 of the best hotels in Malaysia

8 of the best hotels in Malaysia

A selection of hotels in coastal Penang, the capital Kuala Lumpur and tropical Borneo.

Campfire conferences should replace hotels, buffets and PowerPoint

Campfire conferences should replace hotels, buffets and PowerPoint

Scrap the traditional conference and get delegates out in the wild for a memorable experience, says Top Banana's Emma Collins.

Case study: Mercedes-Benz at Yabuli China Entrepreneurs Forum 2019

Case study: Mercedes-Benz at Yabuli China Entrepreneurs Forum 2019

China's best and brightest entrepreneurs got an in-depth look at the Mercedes-Benz S-Class at the annual conference.

In pictures: The Biltmore, Mayfair to open in September

In pictures: The Biltmore, Mayfair to open in September

Following a multi-million-pound redevelopment, The Biltmore is set to become London's latest luxury hotel.

Activities and hotels in stylish Scandinavia

Activities and hotels in stylish Scandinavia

A look at what the capital cities of Sweden, Faroe Islands and Denmark have to offer.

LATEST JOBS