WASHINGTON, D.C. A survey conducted February 2-6 by the National Business Travel Association (NBTA), highlights deep concern by corporations about rapidly increasing hotel costs and their impact on corporate Americas ability to conduct business.
“With demand catching up with supply, the hotel industry might be in the best position of all industries to ride through an economic slowdown. While this is good news for the hotel industry, it is bad news for corporations who are preparing to see higher rates this year,” stated Marianne McInerney, executive director/NBTA.
NBTAs 2001 Business Travel Forecast stated that 64% of companies are reporting hotel expenditure increases between 5-10% this year. To offset these increases, 68% reported they planned on reducing the number of room nights purchased in 2001 by at least less than 5%, and 66% of companies report they have considered reducing their travel budgets for hotels in 2001. (2/23/01)