Economy

Hotel rates likely to rise

SmartCompany /

Business travellers could be facing double digit price rises for hotel stays in Australian cities, according to a survey released this week.

The American Express 2008 Asia Pacific corporate hotel rate projections and market forecast report predicts:

  • Sydney hotel rates up 14%.
  • Brisbane up 8.4%.
  • Perth up 8.1%.
  • Melbourne up 4%.

Rising demand and a failure of property investors fund more development is said to be the reason for the rate rises. The problem for the hotel industry is that hotel developments don’t stack up against residential and commercial developments.

Overseas, the biggest rises would be seen in India, with a 40% rate increase projected for Mumbai, 36% for Delhi and 25% in Bangalore.

Rates were expected to rise by 26% in Singapore, 21% in Beijing and 20% in Kuala Lumpur.

With rising travel costs, what can you do to save? See our story that tracks down ways to find the best possible rate for your next business trip: Smart business travel.

 

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