Venue finder and IT specialist agency Hotelzon, which claims to provide the world’s largest online hotel inventory, has released new data which points to a trend of further weakening of rates across Europe and a reduction in lead times for business travel.
The real time data is culled from agents and corporates across the globe and shows UK lead times, from date of enquiry to the date of the hotel stay, dropping over nine per cent (year on year, 2012 vs. 2011).
Edinburgh, in particular, has seen a dramatic reduction in lead times, which have decreased 18.75 per cent, to 15 days between enquiry and execution.
Birmingham also chalked up a double-digit decrease in lead times, with a reduction of 14.3 per cent to 12 days. Room rates are also plummeting in the second city, dropping from €106.62 to €94.62 in the Hotelzon survey.
Rates in Edinburgh, London and Manchester also all decreased, with an average rate reduction of 5.49 per cent in the UK according to Hotelzon’s data.
In Nordic countries, lead in times for Helsinki, Stockholm and Tampere, by comparison, reduced by an average of 10.33 per cent.
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.
Jani Kaskinen, CEO of Hotelzon, (pictured) 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.”
The Hotelzon data is drawn from confirmed accommodation bookings transacted 1 January to 31 April, 2011 and 2012.
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