Europe’s hotel portal, HRS, has calculated that the Average Daily Rate for one star hotels in the UK decreased by as much as 10% between 2010 and 2011 for corporate travellers. Two star properties decreased by just 3%, but three star hotels saw the greatest decrease with prices changing from £76.20 in 2010 to £65.81 in 2011, a change of 14%.
HRS works with more than 30,000 companies worldwide to provide accommodation in 250,000 properties across 180 countries. Analysing UK bookings made by UK corporate travellers, it also noted that during the same period, four star hotels saw an increase in their Average Daily Rate from £91.52 to £103.13 (13%) as an increase in travel demand meant hoteliers could increase their prices.
Looking on to 2012 Jon West, Managing Director UK & Ireland HRS, says “The flurry of events taking place in London this year will lead to an increase in prices during the majority of 2012 as hoteliers try and maximise rates and profits. However, we believe this higher demand will not materialise and rooms will be available in London over the period.
“The three star category will continue to offer good value, driven by the aggressive acquisition and growth strategy by the Premier Inn Group. However, across chain groups we predict an overall increase of 8% for hotel prices.
“Corporates will continue to move away from the top end brands and those who have a proactive programme will move towards independents rather than chains. These independents need to compete against aggressive marketing and comparison website activity by offering reductions.”