With Vicki Masters, Vice-President, Corporate Operations
We’re so used to hearing about the falling loonie – here’s some news about something that’s rising. Unfortunately it’s a key cost of your corporate travel budget: hotel room rates.
According to the Hotel Price Index, more travellers plus higher consumer spending and strong currency fluctuations have all contributed to room rates which are higher, for the first time, since the financial crisis of 2008/09. Worldwide it’s just 1% year-over-year – but here in Canada rates are up a whopping 5% year over year.
This rebound has resulted in average room rates of $166 per night for all travellers, leisure and corporate, international and domestic. Biggest price increases were in Golden and Vancouver in BC and Banff, Alta. – each over 10%. Toronto, Calgary and Ottawa? All up 3%. And in the good news and bad news department, Fort McMurray, Alta. is down 18%.
How can you keep your business travellers’ hotel costs down?
First, ensure they adhere to your policies regarding where they stay. Not only will they be able to take advantage of corporate rates, but they will be contributing to your accumulated room nights, in turn helping your company achieve targets and possibly securing better rates in the future. Where possible, ask travellers to schedule appointments later in the day so that they don’t have to fly out one day early for a morning meeting. Look for properties with included breakfasts and free WiFi. And help keep the overall cost of that trip down by accommodating your travellers in a hotel which is within a short cab ride – or even walking distance – of their appointments.