The global average hotel room rate is expected to increase by 6.8% in 2024

Recently, travel giant BCD Travel released its 2024 economic outlook, major risks, and estimated prices for aviation, hotel, and car rentals.

The world economy in 2023 has left most forecasters confused. Despite inflation and tightening policies, economic growth exceeded expectations.

It is expected that global hotel room rates will increase by an average of 6.8% in 2024. Although the pace of recovery shows signs of slowing, demand in many markets will continue to exceed available supply. Although many proposed hotels under construction are ongoing, the completion of these projects will take time and development will vary depending on the market. In addition, hotel operators' focus on occupancy rates has given way to a greater focus on average daily room rates and revenue per available room.

Hotels may be more willing to accept lower occupancy rates, limit supply, and charge higher average room rates instead of trying to fill each room. Due to the high inflation rates in many countries, this shift in priorities also brings additional benefits of reducing hotel operating costs. For example, lower occupancy rates should be able to reduce operating costs.

In recent years, hotels have adopted more complex technologies to manage revenue and revenue, making it increasingly difficult for business travelers to find discounted rooms. Although agreement prices are important for travel buyers, providing these prices when needed is equally important. Otherwise, they will ultimately pay the market price.