Corporate travellers are returning to five-star hotels thanks to discounted rates, according to Hotelzon’s latest survey.
The online hotel booking company’s data from April to June 2012 shows there has been a 16 per cent increase in the use of luxury properties in the business travel sector, while three-star hotels are down 38 per cent year on year.
Despite discounting in high-end hotels, corporate room rates have increased by 2.4 per cent year on year with average transient accommodation rates per night standing at €125.13 (£99.71). The third quarter of the year traditionally sees a softening of rates, and in line with Hotelzon predictions, rates in 2012 are set to decrease by 1.9 per cent to €122.79 (£98.21).
Lead-in times have increased slightly, with accommodation being booked 14.43 days out compared to 13.68 days out last year.
Hotelzon also said that the summer of 2012 has been one of the most 'prolific periods', with the UK taking global centre stage. In London, properties maintained market share during the Olympic period and transient rates increased by 9 per cent to €184.13 (£146.90) per room per night during this time. In Birmingham, however, corporate rates took a hit, with a reduction in average room rates of 18.7 per cent to €83.28 (£66.44), showing that much of the corporate business remained in the capital during the Games.
Jani Kaskinen, CEO of Hotelzon, said: “It is clear that corporate travellers are upgrading to better quality products while still paying largely the same they were in previous years. September’s return to work will give a far better indication of corporate confidence, and it will be interesting to see if there is continued migration to five-star properties over the coming months.”
Pictured: Jani Kaskinen