Cookies policy

In order to provide you with the best online experience this website uses cookies.
By using our website, you agree to our use of cookies. Learn more.

Monday,  December 9, 2024   3:13 PM
Hotel prices will increase in 2025, but at a slower rate: Amex GBT
American Express Global Business Travel has released its Hotel Monitor report. (Supplied)

Hotel prices around the world are set to increase again in 2025 but at a slower rate than seen in previous years, according to the latest Hotel Monitor report from American Express Global Business Travel.

The report, which forecasts average hotel rates in 80 major cities around the world, predicts that prices will “stabilize” next year thanks to a record number of new properties and an easing in inflationary pressures on hotels.

In North America, New York is likely to see the highest increase in hotel prices in the region at 4.7 per cent, followed by Mexico City (+4.5%) and Las Vegas (+4.2%). Prices in Calgary and Montreal are forecast to rise +3.2%, Ottawa and Toronto +3.1%, and Vancouver having the smallest increase of North American cities (+2.9%). 

New York continues to experience higher rate rises partly because of the continued block on the use of short-term rental accommodations.

Globally, cities in India, the world’s fastest growing economy, are predicted to see some of the largest increases in hotel rates in 2025, with 8.5 to 9% rises for cities such as Mumbai and Delhi. 

Some African destinations are expected to see double-digit rate increases, including Lagos in Nigeria (+13.4%) and the Egyptian capital Cairo (+11.9%) due to high levels of inflation in these countries.

By comparison, China’s main destinations are forecast to have much lower increases including Beijing (+2%) and Shanghai (+1.6%).

Similar to North America, most of the major European cities are set for average hotel rate increases of less than 5%. 

The study suggests that while the International Monetary Fund (IMF) expects global inflation to fall in 2025, hotel rates are likely to stay high due to labour shortages and rising wages. Supply is boosted by a boom in global hotel construction, with new developments concentrated in the US, China, Canada, India, and Saudi Arabia.

Specific to Canada the global report states that “the country has a healthy hotel construction pipeline, seeing a 54% year-on-year increase in projects under construction” with “26 new hotel openings in 2024 and a further 37 in 2025.”

Trends & insights

Technology is transforming hotel operations and guest experiences, helping hotels manage labour shortages, the report says. 

AI-powered tools streamline tasks like room assignments, allowing staff to focus on guest service. Smart room technology is enabling travellers to tailor the in-room environment to their needs and preferences.

There’s a new focus on the hotel room experience. Guests now see rooms as personalized retreats, driving demand for custom features and wellness options. Hotels are responding with offerings such as late check-out and in-room fitness equipment and workout clothes.

Sustainability is another key focus, with access to the relevant data now essential to meeting both traveller and corporate sustainability goals.

Extended-stay properties are growing in popularity, with apartment-style hotels popping up more and more. It’s a trend spread across the world and especially booming in Asia, reflecting demand for flexibility and longer trips.

“Stabilization in the travel marketplace is good news for customers,” said Dan Beauchamp, vice president of consulting at Amex GBT, “but prices remain high. Travel buyers can benefit from creative sourcing strategies, such as negotiating multiple room types, keeping an open mind on dynamic rates and using TMCs’ negotiated rate programmes to boost coverage in secondary and tertiary cities.”

To explore how these emerging trends are transforming the hotel landscape, and advice on maximizing value from hotel spend, view the Hotel Monitor 2025 report here.


Don't miss a single travel story: subscribe to PAX today!  Click here to follow PAX on Facebook.

Indicator...