HotelHub has released its Q1 2024 HotelHub Index, an analysis of over 15 million hotel bookings, revealing an uncertain business travel environment driven by persistent inflationary pressures.

Findings from the hotel technology solution provider for travel management companies and their corporate customers reveal companies are sanctioning more domestic travel in place of international trips, which have declined by 19 per cent on a year over year basis.

Domestic bookings are rising as a proportion of all corporate travel and now represent 62 per cent of all trips, up from a 52 per cent share in quarter one of 2023.

The decline in international travel noted this quarter marks a stark break with the gradual recovery of overseas business travel seen since the end of the pandemic.

This move suggests companies remain cautious in an uncertain economic environment and are likely dispatching staff based within a country rather than allocating budget for costlier international trips.

Growth in domestic business travel is pronounced in Asia (46 per cent increase) and Europe (30 per cent increase).

In North America, 81 per cent of stays are now domestic, reflecting a five per cent increase compared to quarter one of 2023.
Inflation is still very apparent in the travel industry.

The Index shows the average room rate per night continues to rise, growing by eight per cent between quarter one of 2023 and quarter one of 2024 on a global basis, increasing from an average of $164 to $177 per night.

In fact, in just two years average rates have increased by 12 per cent in New York, 22 per cent in London, and 27 per cent in Paris.

There are also signs that business travellers are condensing trips to stay within budget as the average cost of a trip increased by seven per cent from $414 in quarter one of 2023 to $442 in quarter one of 2024.

In Asia, the average duration of stay has decreased by eight per cent, and in the Middle East & Africa it has decreased by 11 per cent.

Despite this trend, the average international length of stay has increased by 5.3 per cent, indicating that while international travel is less frequent, business travellers are extending trips to accomplish more when they do fly.

Paul Raymond, director of business development at HotelHub, said: “On the whole, business travel is still growing but there are some concerning trends in this data.

“A reduction in international trips is often an indicator of overall business confidence and broader spending in the corporate sector.

“The rate of inflation may be falling in some areas of the economy, but in hospitality we’re still seeing significant price increases that many corporate travel departments are finding challenging.”

More Information

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