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Control and compliance top client hotel spend in 2016 HRG Hotel Survey

Control and compliance remain the burning issues for clients looking to achieve the very best value for their hotel spend according to the latest HRG Hotel Survey. By driving compliance, capturing data and benchmarking against city averages, clients will be in a better position to fine tune their policies and get the best results from their hotel programme.

Key Findings:
• For the 12th year running, Moscow is once again the most expensive city. Average Room Rate (ARR) in 2015 was £253.71 up 1.85% from 2014 when ARR was £249.11
• Moscow, Sao Paulo, Rio de Janeiro, Mexico City and Sydney are the top five cities that saw rate increases
• Aberdeen, Rome, Houston, Dubai and Abu Dhabi are the five cities which experienced the greatest decrease in average rate decrease
• 23 cities have seen an increase in average rate compared to 37 last year
• Fewer cities have seen a decrease in average rate this year. Last year saw 42 cities with decreased compared to only 32 this year
• Athens shows an increase in average rate for the first time in several years
• The Americas region has seen a growth in average rates generally  

The HRG View | Margaret Bowler, Director Global Hotel Relations “Once again the findings of the HRG Hotel Survey reveal that there are great advantages to be had by the client who has control and compliance over their hotel programme. The survey shows that many hotel groups simply didn’t achieve the rates or growth that they had been expecting.  This is primarily a result of soft demand, decreases in supply and a number of new products and categories of product, together with clients continuing to look for savings.”  

“The RFP season this year started earlier and has been longer with some negotiations still ongoing. The savvy client will definitely be able to achieve benefits in the shape of revenue savings but they will need to deliver a tighter controlled programme with compliance to really enjoy those savings.”  

“When we look ahead to this year we can expect to enjoy a number of new rooms coming into the market.  Brands will continue to diversify, delivering new price points for all travellers. The consolidation of hotel groups may bring both advantages and disadvantages to clients.”

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