Business Travel News - Corporate Travel Index 2008 - (Page 22)

LONDON New Hotels May Not Ease London Crunch B CITY PROFILE: usiness Travel News’ 2008 International Corporate Travel Index has, metaphorically speaking, started to resemble a warped pool table, with many European cities clustering at its top end. However, two of those have rarely been out of the top five in the past decade: Paris and London. Both enjoy permanently high occupancy rates owing to their combined attraction as both leisure and business destinations, something that is especially true for London, regarded by many as the world’s leading financial center. In consequence, it is by some considerable distance the most popular city on Earth in terms of international visitors. This year, London is ranked fifth in the Corporate Travel In- dex with a per diem of $480. Using hotel rates and miscellaneous charges, it is ranked fourth at $310. Only Moscow, Kiev and Bangalore are dearer. Figures from other sources tell a similar story. According to the consultancy PKF, hotel rates in the United Kingdom’s capital for the last quarter of 2007 varied between 6.4 percent and 9.7 percent higher than in the same period in 2006. The reason is the occupancy rate: In October it was 87 percent, and in November, 85 percent. Such a high level of demand poses significant challenges for buyers. “Rates continue to rise,” said Cindy Shumate, director of travel services for Estée Lauder Cos. in New York. “Hotels where we have long-standing relationships have been willing to negotiate, but at others it has not been so easy. If they won’t negotiate, the room rates are pretty high.” Other options for keeping down accommodation prices are limited. One method is to use the proliferating budget brands, of which the largest in the capital is Premier Travel Inn. All its London rates are less than $200 per night, but hotels of this nature are a solution primarily for travelers who intend to do little in their hotel other than sleep. Beyond having clean rooms with a bed, television and small desk, facilities are limited. Also worth considering are properties outside the West End, where nearly all of London’s best-known hotels are established. Slightly cheaper options are springing up along the south bank of the River Thames and in east London. The center of gravity for hotel-building in the city has moved because there is nowhere left to build in the West End, and the rapid development of the Docklands commercial area to east of the city center has stretched the catchment area in which visitors want to stay. Even farther east, more hotels are planned for construction around London’s Stratford district, where the Summer Olympic Games will take place in 2012. London’s room stock of 83,000 will rise by 11,000 during the next four years, but may not help to ease demand by international visitors because the new rooms will be situated in the suburbs. Also, even if all the locations their travelers are visiting are in the city center, many buyers still need a spread of properties in their portfolio. “Our business in London is very fractured,” Shumate said. “You have to negotiate in different neighborhoods. Travelers don’t want to stay in Grosvenor Square if they are working on Liverpool Street.” Another problem facing U.S.-based buyers is the continuing strength of sterling, with the dollar hovering around the £0.50 mark during the past few months. This explains in part why visitor numbers from North America to London are expected to fall from 2.53 million in 2008 to 2.23 million in 2012. However, this does not mean buyers can expect more favorable hotel rates in response to lower demand. London tourism chiefs expect the decline in American visitors to be compensated by larger numbers of guests from elsewhere. The predicted fall in U.S. visitors is perhaps surprising given that 18 new air routes from the United States to Heathrow Airport will commence at the end of March, following the advent of the Open Skies air liberalization between the United States and the European Union, which is likely to make the cost of flying to London cheaper, even if hotel rates remain high once the traveler arrives in the city. —Amon Cohen VISIT LONDON 22 CORPORATE TRAVEL INDEX. 2008. .. BUSINESS TRAVEL NEWS www.BTNonline.com MARCH 3, 2008 http://www.BTNonline.com

Table of Contents for the Digital Edition of Business Travel News - Corporate Travel Index 2008

Business Travel News - Corporate Travel Index 2008
Contents
Domestic Corporate Travel Index
Per Diems in 100 U.S. Cities
Alphabetical List Of U.S. Cities
Hotel Costs In 100 U.S. Cities
Food Costs In 100 U.S. Cities
Car Rental Costs In 100 U.S. Cities
New York
London
Dusseldorf
Dubai
International Corporate Travel Index
International Methodology
Per Diems in 100 International Cities
Alphabetical List Of International Cities
Hotel Costs In 100 International Cities
Food Costs In 100 International Cities

Business Travel News - Corporate Travel Index 2008