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Business Travelers Taking Advantage of Mid-Priced HotelsJune 18, 2012 By: Newswire Travel Agent
Travel Leaders Corporate reports its clients spent approximately 2.4 percent more in the first quarter of 2012 on the average nightly cost of a hotel room as compared to the first quarter of 2011. The top hotel chains being utilized for business travel are mid-priced hotels.
Travel Leaders Corporate reports that the 2011 data is based on a sample of roughly 600,000 bookings. The average cost per night in Q1 2011was $130.13 and in Q1 2012 was $133.28.
“The modest increase in average hotel cost per night for our business travelers is roughly 3 percent less than what other industry sources are stating. What this data shows us is that our clients are focused on managing their expenses and looking for value,” said Travel Leaders Corporate President David Holyoke. “We constantly work to help our clients manage their expenses and find the most value for their corporate dollar. Our clients continue to find value in our negotiated rates, especially those for mid-priced hotels.”
Hotel booking data for April of this year indicates the average cost per night of a hotel room fell slightly to $129.45 on similar demand as compared to the first quarter of 2012.
Travel Leaders Corporate’s data suggests that Hampton Inn, Holiday Inn, Courtyard by Marriott, and Hilton Garden Inn were four of the top five most booked chains in terms of room nights during the first quarter of 2012.
“These chains are outpacing the more marquee brands within a hotel group’s portfolio,” Holyoke added. “This is reflective of a continuing trend among U.S. corporations, including our clientele, to manage hotel expenses by staying at mid-priced properties.”
“Mid-priced hotels offer our clients added amenities like free Wi-Fi and hot breakfast, so I’m not surprised that we’re seeing trending toward more of our clients booking in that category,” Holyoke said.
Travel Leaders Corporate found that business travelers spent an average of approximately 1.7 percent more across the upper upscale, upscale, upper midscale, and midscale categories. The upper midscale hotel rates remained steadiest, increasing by just $0.38 per night.
The 2012 average cost per night at Upper Upscale was$163.91, for Upscale $132.10, for Upper Midscale $108.19 and Midscale $103.06.
"All categories are seeing growth and that is encouraging. Where there is more competition, in the midscale and upper midscale categories, prices are more affordable,” Holyoke added.