BCD Travel: Anticipating 6.8% Global Hotel Rate Surge in 2024

BCD Travel‘s latest outlook predicts a 6.8% average increase in global hotel rates for 2024. Despite signs of a slowing recovery, demand is expected to outpace available supply in various markets. Ongoing projects to expand hotel room capacity are underway, but the impact will vary across markets and take time to materialize. The focus among hoteliers has shifted from occupancy concerns to emphasizing average daily rates and revenue per available room. Rather than striving for full occupancy, hotels may opt for lower occupancy, limiting availability and charging higher rates.

This strategic approach is seen as a response to rising operating costs, including housekeeping services, amid current high inflation. BCD Travel highlights the adoption of sophisticated revenue and yield management techniques by hotels, impacting the availability of rooms at preferred rates for business travelers. The potential difficulty in securing these rates may lead to increased costs for hotel programs in 2024.