Global Sticker Shock, According to Smith Travel Research

Hotel rates have risen this year in the top international cities--in some cases by shocking amounts. That's according to Smith Travel Research, which studied rates, occupancy, and supply and demand in 15 key markets, 12 of them outside the U.S.

Measured in U.S. dollars, hotels in Berlin; Buenos Aires, Argentina; and Hong Kong cost between 16.5 percent and 17.9 percent more in the first four months of this year compared to 2006, according to STR. But that was nothing compared to an eye-popping 25.6 percent gain in London; and 33.7 percent more for a room in Singapore than a year ago. Some of the increases are partly accounted for by currency exchange rate fluctuations, but meeting planners might wince at the numbers, nonetheless.

The only overseas markets in the study with lower than 10 percent rate inflation were Johannesburg, South Africa (1.1 percent); Dubai (6.4 percent), United Arab Emirates; and Tokyo (8.2 percent).

Big rate hikes often reflect gains in occupancy, but that was not the case in these markets. London saw a marginal 0.7 percent occupancy growth, and Singapore just 2.6 percent. Amazingly, Buenos Aires was able to secure its 17.9 percent rate increase despite a 6.1 occupancy decline. Only somewhat less egregious was Hong Kong, where a 17.7 percent rate jump did not mirror a 2 percent occupancy falloff.

In raw dollars, the most expensive of the overseas markets was Dubai, with an average daily rate of $233 for the 12-month period ended April 30. Next were Paris ($229, with a 13.3 percent increase in the first third of 2007), London ($217), Tokyo ($168), and Hong Kong ($164). The only city on the list below $121 was Sao Paulo, Brazil at $77, despite registering the largest occupancy increase at 9.1 percent.

As for room supply, the only market with a notable change was Dubai, where there was an impressive 9 percent more rooms at the end of April than a year earlier. Tokyo was the only overseas city studied that declined in hotel rooms (1.6 percent).

Looking for some good news? If you're intent on taking a meeting to another country, there's this: None of the overseas markets was as expensive as New York, where the average daily rate for 2007 stood at $247.91 through April.

RSS Share

Want to use this article? Click here for options!
© 2012 Penton Media Inc.


Acceptable Use Policy
blog comments powered by Disqus

Search 125,000+ Venues

Search Meeting Space

Find Event Venues with Cvent

The Meeting Planning Blog

Face2Face Latest Posts

Sign Up for Our Free E-Newsletters



Meetings Collaborative

Rate your experience with meeting venues and suppliers.

Facility / Hotel

 
Powered by: Meetings Collaborative
Aega Awards

Latest Webinar

Beyond Marketing: What Else Social Media Can Do for Your Meetings
Thursday, May 24 | 2-3 p.m. EST

Most associations know that online social networks can be handy tools to spread the word about their meetings and events. But social media can do so much more than market. Our social media expert will uncover ways you can leverage social media to discover the educational content your members are craving, engage and energize your community, build relationships, and even simplify your meeting processes. Register Now!

VIEW ALL ARCHIVED WEBINARS

Recent Comments

Powered by Disqus

Back to Top

Explore Our Newsletters


Meeting Planner Survival Guide

Whether you're a novice planner or a veteran, this compilation of must-read articles is your meeting planning resource.

Must-See Meeting Files

Visit the MeetingsNet expert-advice site, where we’ve got top meeting pros on camera answering a variety of your questions as well as a collection of educational—and sometimes offbeat—editors’ pick lists — from the top tech tools to the best books for meeting professionals.

Suppliers/
Facilities/CVBs

MeetingsNet makes it easy to find the CVBs, tourist boards, and facilities you need for your next meeting.

Deal Finder

Special offers brought to you by MeetingsNet.

Find A Job

Targeted to all aspects of the hospitality and special events industry.

SMM PORTAL

Your source for Strategic Meetings Management info and intelligence

Facebook   Twitter   LinkedIn   RSS Feed

Inside Current Issue

May 2012 CMI

May 2012 FIM

April 2012

April 2012 RCM

April 2012

April 2012 AM

MM March 2012

March/April 2012 MM

Browse Back Issues