2024 Hotel Rates: How to Adapt Your Travel

It’s no secret that hotel rates have been a pain point for Travel Managers throughout 2023. Unfortunately, all signs point to this continuing through the next year, with 2024 hotel rates projected to rise even further.

On the positive side, this is not a shock. In fact, this is something that Travel Managers have been expecting, according to?Business Travel News’ Annual Hotel Survey. According to the survey, which polls nearly 150 business travel buyers and Travel Managers, more than three-fourths of those surveyed said they expected 2024 hotel rates to be higher. About three-fourths of those individuals reported that they expected 2024 hotel rates to be at least 5% higher than 2023 hotel rates. Meanwhile, 25% expect 2024 hotel rates to be at least 10% higher than 2023 hotel rates.

Despite these estimated rising rates, though, those surveyed told Business Travel News that they likewise expected to increase bookings. As such, Travel Managers need to think about how they can adapt to travel. They'll need to weather increasing hotel rates with minimal damage to their travel budgets. Here’s what they’ll need to consider.

Reconsider Your Hotel Partnerships

Your hotel partnerships are extremely valuable. However, don’t think that you don’t have room to negotiate for a better deal, particularly in the face of those rising 2024 hotel rates. As Business Travel News suggested in its annual survey, consider whether you need to reapproach your hotel partnerships in order to reap the most value. Aim for static annual discounts, dynamic discounts or both as needed.

Take a Look at Where Your Travelers Travel and Why

The increased 2024 hotel rates are expected to be higher in some regions and cities than in others. If you’re noticing that your hotel spend in certain areas of the world is substantially higher than your spend when sending Travelers to other destinations, it may be time to reconsider the necessity of those trips, at least until rates calm.

In general, you’ll find that 2024 hotel rates will be highest in countries or destinations where inflation is high but also where demand is high. For example, this might not be the year to attempt to host a large summer event in Paris. Where leisure Travelers flock, you can expect to find higher rates that could deter you from booking business travel.

Plan in Advance

It’s not always easy to plan business travel in advance. However, when you can do so, you can save money on travel rates across the board, not just when it comes to 2024 hotel rates. While, yes, it may take extra time to get the necessary approvals for business travel in the current climate, getting ahead of travel planning sooner rather than later can help curb some of the negative impacts of the upcoming year’s climbing rates.

Lean on Tech Resources

The right resources can help you and your Travelers save money. If you’ve yet to look into the ways that AI and tech can help Travel Managers and business Travelers find the best deals possible, be sure to read our article on the importance of a healthy tech stack.

Leaning on tech resources can save money by finding deals that you might otherwise miss. They can also analyze your data to find deals that are most suitable for your Travelers. They may also find deals that are compliant with your organization’s travel policies. Likewise, they can even, in some instances, ensure that travel deals are compliant with sustainability goals. Whatever your travel-booking goal, AI and the right tech tools can help you achieve it.

Then, of course, as AI takes business travel-related busy work off Travel Managers’ and Travelers’ plates, it frees up time for those individuals to do more high-value work, increasing productivity and profitability.

Make Compliance a Priority

In light of 2024 hotel rates, you can’t afford noncompliance among Travelers. Now is the time to ensure that your organization’s travel policies appropriately address the 2024 hotel rates. Place parameters around what, when and how business Travelers can book hotel stays. Once you’re sure that your travel policy clearly defines those parameters, communicate those parameters to all who may be impacted and then enforce compliance moving forward.

Be Flexible

Just because an organization has always traveled a certain way, that might not be the best way in 2024. Be flexible as you approach travel spend in the new year so that you can ensure that business travel stays within budget. Consider working with new partners; consider traveling to or holding events or meetings in new destinations.

Keep Your Values in Mind

It's important to remain flexible. However, it's also important to know the values that you and your Travelers want to adhere to, even in the face of higher prices.

For example, many organizations are making concentrated efforts to make their business travel more sustainable. As part of these efforts, they’re choosing to stay with hotel brands that are more eco-friendly than others. In some cases or in some destinations, these brands may charge a higher price. Are your Travelers willing to forgo their sustainability-focused scruples in order to save a little on their room rate?

For a lot of Travelers, the answer is going to be “no.”

JTB Business Travel is Here to Help, No Matter What 2024 Brings

If the last few years have taught us anything, it’s that the business travel landscape is constantly changing and constantly coming upon challenges that force Travel Managers and planners to adapt and overcome. When we look ahead to the upcoming year of travel and 2024 hotel rates, it’s nothing that we can’t take on.

Let JTB Business Travel stand in your corner in the year ahead, with the JTB Global Hotel Program. Available exclusively to JTB Business Travel clients at no additional cost, the program provides discounts off best available rates and guaranteed availability at a wide selection of hotels in every price category. Plus, program members enjoy extra, value-add amenities wherever they stay, such as free in-room WiFi, parking and more.

Have your hotel program sorted for the year, but have other business travel needs? Whether you’re aiming to simply keep your travel budget stable in the face of rising rates or want to overhaul your business travel policy and platform, we can help. Learn more about our solutions and get in touch today.