Business Travel News - Corporate Travel Index 2008 - (Page 28)

Weak Dollar Magnifies Int’l Price Hikes BY AMON COHEN uyers of a nervous disposition may find Business Travel News’ 2008 International Corporate Travel Index disturbing. With average per diems across its 100 cities up 11 percent in 2007— which also was an expensive year—it does not make for happy reading. As was the case in 2007, the twin culprits are rising hotel and food costs compounded by further weakening of the U.S. dollar. As a consequence, no fewer than 17 cities have returned a per diem of more than $400, compared with seven last year. Fortunately, there is some cause for optimism amid the gloom. At press time, the dollar had stabilized against the euro at €0.67 for three months, and appreciated against the pound to £0.51 after hitting a low of £0.47 in November 2007. Furthermore, some currency analysts believe the worst is over for the much-buffeted dollar. “It doesn’t look the dollar is going to make the world a tougher place for U.S. travelers in 2008, and it may even become a little cheaper,” said Paul Robson, a foreign exchange strategist with the Royal Bank of Scotland in London. For now, however, the pain is acute, as these figures show. They consist of average hotel rates negotiated by corporate customers of BCD Travel and collated by its Advito consultancy wing, combined with the cost of three meals in the same city from Organization Resources Counselors. The figures show that rising travel costs are worst in Europe. The continent accounts, for the first time in this report’s history, for all 10 of the priciest destinations in the top 100. In the top 20, only Bangalore, tied for 14th, and Seoul in 18th are from other parts of the world. Top of the heap this time is Paris at $528, followed by Amsterdam at $506. The Dutch capital narrowly edges Moscow, the most expensive city in 2007, into third place. Moscow is one of only a handful of destinations that are cheaper this time than last, down from $510 to $505, although at $367 per night its hotels remain the priciest in the world. Whichever way the cake is cut, the figures B cannot be made to look much better. The average rate across a basket of 10 of the most important business destinations on the list— London, Paris, Moscow, Frankfurt, Brussels, Toronto, Tokyo, Dubai, Shanghai and Mumbai—is $356.90, compared with $317.20 last year. The average across all 100 cities has risen from $281.87 to $314.08. Many of the steepest rises are in northern Outside Europe, the figures are less frightening. The Americas in particular are ranked much lower than five years ago. Only two cities—Rio de Janeiro (32nd, $354) and Calgary (49th, $310)—grace the top 50, while the per diem for bottom-placed La Paz ($109) is so cheap that five travelers could spend a night there for almost the same price as one traveler in Paris. Other cities in the bottom 10 are oil-less Middle Eastern locations—Cairo, Amman and Damascus—and three from Asia: Guangzhou, Hanoi and Kuala Lumpur. At $192, Guangzhou is considerably cheaper than China’s two big destinations—Shanghai ($306) and Beijing ($253)—but it is one of numerous conurbations in the country where experts expect travel to quickly accelerate in the next decade. If one examines only hotel figures, the gap between Western Europe and the rest of the world is less stark—or, rather, it becomes clear that there are rate hotspots in other regions. As was the case last year, Eastern Europe is particularly expensive, with Moscow in first place and Kiev only $3 cheaper at $364. Also in the top 20 hotel rates are the Slovakian capital of Bratislava (8th, $270) and St. Petersburg (11th, $255). Another hotel hotspot is India. Bangalore takes the third position with $337, while Mumbai ties for 13th ($248) and New Delhi falls in 15th ($244). In all the above-mentioned cities, there are cheaper accommodation alternatives, but little in the three- or lower four-star range. It PREMIER PER DIEM: Taking in the view of La Grande Arche, otherwise known as La Defense, in Paris requires paying the highest daily prices for doing business in the world. means companies have little realistic alternative to placing their personnel in the most expensive properties, and demand in these is high while supply is low. The Middle East also needs watching for similar reasons. Kuwait’s hotel average is $240, putting it in 17th place, followed closely by Doha in 19th and Dubai—which some other surveys place among the world’s top five for hotel rates—tied for 27th. The pace of hotel building in the Middle Continued on page 29 Europe. The resurgent German economy has assisted Frankfurt in its jump from 21st place to 11th, with the per diem rate rising from $354 to $433. Oslo is also a steep climber, with a $96 increase to $478 taking it up the table from 12th position to sixth. 28 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