Cheap hotel rates attracting business travellers
26 January 2009 21:08
Firms are being encouraged to conduct business travel by heavily discounted hotel rates, it has been claimed.
Along with cheaper travel insurance for business trips, reduced accommodation fees are attractive to companies looking to minimise their expenses at a time of such economic duress.
According to PricewaterhouseCoopers (PwC), a number of hoteliers are also choosing to downgrade their establishments - from five to four stars, or lower - in order to hold onto their corporate customers.
Liz Hall, head of hospitality and leisure at the financial services giant, added that many will even consider reinventing themselves as budget hotels catering to business needs.
Suggesting that prices will fall further in the future, she added: "Buyers will want to check they are getting the best rate."
PwC's UK hotels forecast suggests that occupancy rates were 1.6 per cent lower in 2008 than they were the year before.
What's more, the firm predicted that by the end of this year, hotel occupancy will be down ten per cent compared to 2007.