As we approach the second quarter there is plenty of background noise to be concerned about that will directly affect hotel pricing. Whether it’s UK GDP, the Purchasing Managers Index, employer tax environment or job vacancies, there is not much good news in sight currently. Layer on top the new level of political instability that has appeared quickly and probably the one thing we can say with certainty is, there is a high degree of uncertainty. For procurement managers in the travel category there are two high level drivers – suppliers pricing and then their own company’s position on travel spend. Weak hotel demand might be a drag on Average Daily Rate (ADR) growth at hotels and allow travel budgets to go further, but if that’s due to declines in consumer spending, tax rises etc that impact corporates themselves, it may not be the price that’s the critical factor. Its probably control and visibility.
- Price indicators for Q2 of 2025.
