BCD projects average global hotel rates to increase by 6.8 percent year over year in 2024, according to the forecast.
“Even as the pace of the recovery shows some signs of slowing, demand should continue to outpace available supply in many markets,” according to BCD. And while hotel development and conversion pipelines have been robust across the globe, those will “take time to come online,” according to BCD.
To that end, hotels have shifted their focus from pushing occupancy to raising revenue per available room and average daily rate, according to BCD.
“Instead of trying to fill every room, hotels seem more prepared to accept lower occupancy, limiting availability and then holding out for higher rates,” according to BCD, adding the shift in focus could benefit hotels’ bottom lines through lower housekeeping costs.
BCD forecasts 2024 ADR in the U.S. to increase 4.3 percent year over year, while it increases 6.5 percent in Canada and 8 percent in Mexico.
In Europe, BCD forecast ADR to increase 7 percent year over year, while it increases 8.2 percent in Latin America, 6.3 percent in Asia, 5.2 percent in Africa and 3.1 percent in the Southwest Pacific, including Australia.
BCD projected 2024 ADR in the Middle East to rise 14.4 percent year over year. Expected gains in this region are primarily driven by high expectations in Turkey, according to BCD.
Hotel News Now – read full article here