Latin America’s Hotel Rates Go up as Europe’s Hotel Rates Go Down

Eurozone hotel rates went down in the first half of 2012 due to the regional economic crisis which is still gripping the continent, while Latin America showed strong growth in hotel rates with Mexico City showing the highest increase.

According to the Hogg Robinson Group, an international corporate services company, in their twice-yearly hotel survey, the international hotel market, while still fragmented in many areas, appears to be stabilising across the globe.  Stewart Harvey, HRG’s Group Commercial Director, mentioned in the press release:

“The results of the hotel survey present an intriguing picture of where businesses are channeling travel spend. Macroeconomic weakness and uncertainty are driving room rates down across mainland Europe, but the significant growth in room rates across the Latin American region indicates a shift in business priorities towards high potential destinations.

“Businesses are not necessarily spending less on travel, but they are certainly looking for ways to make existing budgets work harder.  As demand drives hotel prices up in emerging regions, we are working with clients to help negotiate the fairest rates, and maximise the returns from travel-related expenditure.”

Trends noted in the report stated that Moscow room rates, for the eighth year in a row, are the highest of all destinations that HRG surveys.  Lagos comes in second place for the highest priced rooms; travellers there usually seek the security offered by the more expensive five-star hotels as the situation in oil-rich Nigeria can be quite dangerous.

Mexico City presented with the highest room rate increase:  a whopping 30% increase over 2011; HRG reports this is due to increased demand, and a lack of new hotels opening in the area.  Barcelona, in contrast, was the city that presented with the heaviest losses; due to Spain’s economic woes, demand and rates fell by 22%.