|
Article Excerpt
After a second year of strong domestic hotel rate hikes and rising car rental and restaurant pricing, American business travel buyers are facing a tough environment in which to save their companies money on travel spending.
The daily price of a hotel room booked at an average corporate negotiated rate, a rented car and three meals was $310.81 for a typical U.S. business traveler in 2006, a number that varied widely based on the city involved and the services required.
Hotel rates continue to eat the majority of the typical traveler's dollar, comprising about 49 percent of overall daily cost. Average daily automobile rental prices increased by more than 10 percent from 2006 levels and food prices jumped as well.
New York City continues to inhabit its own travel-cost universe as its average per diem of nearly $570 in 2006 stood at more than $100 higher than the cost of the second-priciest city, Washington, D.C. New York has the highest daily business travel costs in the world, according to Corporate Travel Index data, and topped the charts of domestic hotel, car rental and food pricing.
HOTEL
Strong demand and high occupancy continued to push domestic hotel rates up in 2006, particularly in the costlier cities that are further distancing themselves from secondary cities in price.
"It isn't just that every city is getting more expensive," said Bjorn Hanson, head of the hospitality practice at PricewaterhouseCoopers. "The larger cities are having a larger premium. Also, what happens in making cities more expensive is that hotels seem to fill the least expensive rooms first."
Business Travel News this year significantly changed the methods by which the Corporate Travel Index assesses hotel costs. The difference between last year's data, which was based on corporate rack rate, and this year's data, which is derived from average hotel rates negotiated by BCD Travel's clients, is so stark as to render year-to-year comparisons pointless.
BTN...
|
|
More articles from Business Travel News
New hotels, conv. center boost Boston., February 19, 2007
Laboring to meet surging hotel demand., February 19, 2007
International per diem show rise of Russia, India., February 19, 2007
Food costs in 100 international cities., February 19, 2007
Per diems in 100 U.S. cities., February 19, 2007
Looking for additional articles?
Search our database of over 3 million articles.
Looking for more in-depth information on this industry?
Search our complete database of Industry & Market reports by text, subject, publication
name or publication date.
About Goliath
Whether you're looking for sales prospects, competitive information, company
analysis or best practices in managing your organization,
Goliath can help you meet your business needs.
Our extensive business information databases empower business
professionals with both the breadth and depth of credible,
authoritative information they need to support their business
goals. Whether it be strategic planning, sales prospecting,
company research or defining management best practices -
Goliath is your leading source for accurate information.
|
|
