Finding hotels for business trips is something so many professional Americans have fit into their daily logistics. It is sometimes simply a necessity for businesses to budget out the precise allocation of funds for such trips and stays. The problem coming down the pike for many is that rates may be rising come the new year.
According to new research covered by a New York University department, the use of deals and coupons may become almost necessary to finding a quality place to stay at an affordable price.
The current negotiations between both the hotels and companies of the United States in order to set amenities and general rate prices has begun. Both sides are now further apart than usual, which could be salty news for those who have to travel, according to divisional dean of NYU’s Tisch Center for Hospitality, Bjorn Hanson.
“The emerging seller outlook for 2014 is for corporate contract rates to increase by a national average of 6.5% to 7.5% or more, but many corporate travel managers are planning for increases of 4% to 5%,” Hanson said in a statement announcing the study. “A preliminary estimate for the result of negotiations is for an average increase for corporate and contract rates of 5 to 6 percent, depending on location and the number of room nights for a specific buyer.”
As compared to 2013, the average negotiated price increased by around 5%, and Hanson credits the economic upturn as a reason for the rate increase. However, one would assume some businesses who haven't had a strong last couple of years won't find the increase very fair. Therefore many are consistently looking for hotel deals as a way of saving money.
“In 2010 and 2011, there was a trend for corporate and contract rates to include services and amenities including internet access, fax charges, use of fitness centers, and breakfasts,” Hanson said. People are once again willing to travel, which means hotels don’t need to throw in extra perks.
Certain groups are now sending employees to limited-service hotels, cutting into luxury hotel sales and revenue, according to Hanson.
“Some companies are trading down,” Hanson said. “It may be that the guest rooms in many select-service hotels are just as nice and in some cases … nicer than traditional, full-service hotels.”