Hotel rates in the global market have fallen since the start of June, and lower leisure demand helped “decline corporate pass rates, particularly in primary markets that entertain a strong mix of business and leisure travel,” according to a new report from Tripbam redemption platform.
The company’s September 2022 Market Association report showed hotel rates in the global market were down 6 percent from TripBam’s June report. According to the report, TripBam also expects “corporate bookings to continue to grow globally through the fall as more companies increase overseas travel and meetings.”
Hotel rates in the global market are “10.6 percent higher now than they were during the same period in 2019,” according to the report, and “rates are likely to continue to rise [for corporates]due to continued subdued demand for less price-sensitive temporary business travel, room availability issues due to staff shortages, and rising freight, labor and energy costs.
With rates high, “static negotiated rates are proving more valuable than dynamic discounts,” according to the report. Corporate travelers in TripBam’s dataset are booking negotiated static fares 31 percent of the time, which is “on par” with Q2 2022, but down from 43 percent from Q3 2019 , according to the September report.
TripBam’s Business Travel Index, which includes a combination of fares and business travel volume on a 100-point ascending scale set at 2019 levels, measuring the industry’s recovery from Covid-19, recorded a “score of corporate travel health” in the third quarter of 79 out of 100, up 12 percent from a score of 67 according to TripBam’s June report.
The report uses TripBam customer data extracted over a 12-month period. The booking data only covers the corporate bookings of the company’s customers.
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