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NYU: 2016 Corporate Hotel Rate Increases Largest in 3 Decades

Travel Weekly reports the average corporate negotiated hotel rate will increase between 6.5% and 7.5% in 2016, according to Bjorn Hanson, a clinical professor at the NYU School of Professional Studies, Tisch Center for Hospitality and Tourism. That means the average rate could mark the highest rise in corporate rates in the history of NYU’s annual report. Last year, corporate rates increased approximately 6.25%, the largest increase since 2006. Hanson said this year’s outlook shows that hoteliers are trying to reach a more favorable parity between transient and corporate rates than in previous seasons. “There is still some catching up to do from the perspective of the hotel companies,” Hanson said. “In recent years, the negotiated corporate rate increases ended up being less than average daily rate increases, so even though corporate rates have been increasing, they have not increased as much as other rates in general.” To read the entire story, click here.

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