Corporate cutbacks reduce growth of hotel room rates

Published promotional rates for hotel rooms may be cheaper than negotiated company rates as hotels respond to cutbacks in corporate travel budgets.

Hotels are aware that companies are insisting their employees use lower-priced, no-frills hotels, according to the latest quarterly travel index from American Express.

Price increases are slowing down: western Europe saw an increase of up to 2.3 per cent and North America up to 3.2 per cent quarter-on-quarter to June.

In the UK, hotel prices rose by 1.4...

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