PRESS RELEASE: Hotelzon releases corporate hotel booking data: less lead in – lower rates

Hotelzon has released its latest data set detailing trends for corporate hotel bookings and demand. 

Using Hotelzon’s real-time data*  from agents and corporates across the globe, the figures detail a reduction in lead in times for business travel and further weakening of rates across Europe.  
 
Lead in times (date of enquiry to the date of the hotel stay)

• In the UK, the average lead in times for accommodation bookings has reduced by over 9% year on year (2012 vs. 2011).
• Edinburgh in particular has seen a dramatic reduction, with lead in times decreasing by 18.75% to 15 days between enquiry and execution.   
• Birmingham too saw a double digit decrease in lead in times with a reduction of 14.3% to 12 days.
 
The UK fared better than Nordic countries, where lead in times for Helsinki, Stockholm and Tampere reduced by 10.33%. Stockholm was the exception, where booking times increased from 20 to 21 days year on year.
 
Rates (based on rate transacted for each room night)
Hotelzon's research challenges the traditional yield management principle that agents and corporates can achieve the most favourable rates with the longest lead in time. 
 
Hotelzon’s aggregated statistics show that the average room rates for bookings made one day prior to arrival are €119.04, whereas accommodation booked 16-24 days out is €121.71. 
 
• Accommodation rates across Europe have decreased, with Birmingham of particular note where rates dropped from €106.62 to €94.62. 
• Rates in Edinburgh, London and Manchester all decreased, with an average rate reduction of 5.49% in the UK according to Hotelzon’s data.  
 
Jani Kaskinen, CEO of Hotelzon, said, “Our rates are based purely on transactions made by business travel agents and corporate clients alike, and therefore give one of the best indications of the reality of the business accommodation market. The reporting corporates are clearly still tightening their purse strings and making sure that their business travel is absolutely necessary.  It will be interesting to see the next data set for the UK in particular, and to see the effects of the Olympic and Paralympic Games on the capital and the other cities in the UK.”   
 

 
* Data is from confirmed accommodation bookings transacted January 01 – April 31st 2011 and 2012.