News

Warning: Hotel Rates Projected to Climb in 2024

October 13, 2023

Hotel rates are projected to continue to escalate as we move into 2024 — particularly in major North American convention destinations. Here’s a look at what you can expect in hotel rates and availability next year, as projected by the Amex GBT 2024 edition of its Hotel Monitor report.

Hotel rates already have been rising steadily, thanks to inflation on key hotel costs such as labor, energy and food, plus a shortage of skilled workers and high leisure demand. But while a softening in leisure travel may mitigate hotel rates a bit, there’s no real relief in sight, according to the American Express Global Business Travel (Amex GBT) 2024 Hotel Monitor report, which projects global hotel rates and availability in 2024. This is mainly because the continued uptick in business travel, meetings and events will make up the difference, and then some, for the softening in leisure travel.

Hotel rates are projected to rise mainly in tandem with the local economic factors, including inflation. This means it’s projected to rise in the double digits in several key U.S. convention cities, such as Chicago (+12%), Boston (+11%) and San Jose (+10%). They’ll also be up noticeably in Portland (+9%), Dallas (+8%), Atlanta (+7%) and San Francisco (+6%), as well as in key Canadian destinations including Vancouver (+9%), Montreal ({8%) and Toronto (+6%).

In Latin America, the highest rates of increase in hotel rates are anticipated for Buenos Aires, Argentina, where they are projected to shoot up more than 17%, and Bogota, Colombia, where they’re expected to rise 14%. In Europe, the highest increases in hotel rates are projected to be in Amsterdam and Paris, (both at +11%) and Gothenburg, Sweden (+10%). Cairo also won’t offer much in the way of bargain rates, with a projected increase of more than 14%, or in any of India’s major cities, all of which have projected hotel rate increases in the double digits. Hong Kong, however, could offer some good deals, which a projected rate increase of less than 2%.

Hotel room availability is predicted to be a bit less volatile, with most of the survey respondents saying they think it should be about the same for the coming year, though it is expected to ease more by 2025. The availability of meeting space follows the same expectations that it will hold steady through 2024 and increase in 2025.

Some tips from the report on how to make the most of your hotel budget and produce more meaningful events in the coming year include:

For smaller meetings, stick with a small number of preferred suppliers to get the volume you need to negotiate good rates and secure amenities.
Anticipate shorter lead times, more demand for enhanced attendee experience, and an increased need to focus on environmental, social and governance priorities.
Consolidate your travel and meeting management data to gain additional insights into how you can optimize your events.

Amex GBT’s Hotel Monitor 2024 forecasts hotel price trends in more than 80 major cities based on analysis of millions of hotel transactions in the Amex GBT database, as well as International Monetary Fund (IMF) economic data.