Resurgence of business travel puts hotels back in the black

DALLAS - Business travel to top U.S.

Resurgence of business travel puts hotels back in the black

DALLAS – Business travel to top U.S. convention centers and global business cities rebounded with higher occupancy rates and recorded higher average hotel rates last year according to the latest Hotel Price Index™ (HPI™). The annual report illustrated a 2% global increase in average hotel room rates paid in 2010 when compared to the year before. Key findings culled from the report also reveal the next generation of cities primed for business travelers.

Traditional business and tradeshow cities including New York, Las Vegas, Orlando, London, and Paris were consistent with the global findings in the HPI, with each city showing increased hotel rates of varying degrees. However, this year’s report shows Asian cities such as Singapore, Shanghai and Beijing to be winning favorability with business travelers in comparison to cities in Europe and the U.S.

“Our HPI shows higher occupancy levels and price increases in major business capitals and at higher star rating hotels,” said Victor Owens, vice president of marketing, North America for Hotels.com. “In the U.S., New York, Las Vegas, and Orlando continue to draw business travelers from all over the world and domestically, but American travelers are taking a strong interest in Asian cities, particularly Shanghai and Hong Kong.”

Hotels equipped for business travelers range between three and five stars and offer corporate travelers necessary amenities to conduct business. A majority of business hotels in top global cities such as Hong Kong, Shanghai, Boston, Chicago, London, and Paris, posted significant increases in average paid daily room rates year-over-year.

Visit http://www.hotel-price-index.com for a look at the entire report, featuring infographics, detailed maps, and a city-by-city breakdown.

Key Findings and Report Highlights:

Las Vegas, New York, Orlando, San Francisco, and Los Angeles were the most popular cities for American and international business travelers to visit in 2010.

Strong business interests in Asia elevated Shanghai, Beijing, and Tokyo several spots to join London, Paris, Toronto, and Vancouver as the most visited destinations in 2010.

The average price paid per room by U.S. travelers is $114 domestically and $160 internationally.

Following is a list of global cities popular with business travelers:

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City
2009
2010
YoY ADR*

Beijing
112.41
113.66
1%

Las Vegas
83.70
91.12
9%

Los Angeles
123.99
129.18
4%

New York
216.42
245.94
14%

Orlando
84.44
86.67
3%

Paris
196.33
210.17
7%

Shanghai
115.29
142.23
23%

Tokyo
171.73
167.94
(2%)

Toronto
124.14
140.30
13%

Vancouver
141.37
159.27
13%

Following is a list of average daily rates at three to five star hotels in top global cities popular with business travelers:

City
Star Rating
2009
2010
YoY ADR*

Beijing
5
190.69
193.51
1%

4
105.82
109.48
3%

3
65.32
66.77
2%

Boston
5
337.48
407.23
21%

4
215.18
241.57
12%

3
145.27
156.27
8%

Chicago
5
295.76
355.53
20%

4
161.74
181.89
12%

3
135.86
136.49
0%

Hong Kong
5
243.27
279.02
15%

4
135.93
174.37
28%

3
86.26
114.7
33%

Las Vegas
5
202.4
198.32
-2%

4
114.43
115.05
1%

3
67.33
70.62
5%

City
Star Rating
2009
2010
YoY ADR*

London
5
309.99
367.54
19%

4
191.4
219.29
15%

3
134.22
152.05
13%

New York
5
577.67
557.55
-3%

4
292.93
330.48
13%

3
221.02
251.25
14%

Orlando
5
233.81
231.13
-1%

4
161.55
166.83
3%

3
101.34
100.25
-1%

Paris
5
411.25
483.49
18%

4
254.13
271.84
7%

3
163.24
176.39
8%

Shanghai
5
206.29
252.82
23%

4
115.07
144.95
26%

3
72.93
93.74
29%

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