Data from over 2 million hotel bookings indicates tighter control over travel budget

• Business travelers are booking hotel reservations nearly 19% earlier than the same period last year.
• Average rate per night up 3.62% since the 2nd quarter of 2023.
• Average length of stay of 2.5 days in line with hybrid working models.

HotelHub has published its HotelHub Index for the second quarter of 2024, an analysis of more than 2 million hotel bookings made between April and June, revealing that businesses are turning to more intentional travel in the face of uncertainty.

Overall booking volumes through HotelHub increased by nearly 7% in Q2 2024 compared to Q2 2023, suggesting that the financial and geopolitical climate is not deterring companies from traveling for business. However, the data reveals one important change: booking lead times are increasing. In Q2 2024, bookings were made an average of 16.68 days before check-in, compared to 14.04 days in Q2 2023, an increase of 18.8%. This trend is even more marked for domestic bookings, which jump by almost 23%, from 12.22 days in Q2 2023 to 14.97 days between booking and arrival in Q2 2024. At the same time, international booking times, traditionally longer, are up 2 days, from 18.75 days in Q2 2023 to 20.75 days in Q2 2024, an increase of 10.7%.

This shift in booking lead times indicates that companies are taking a more cautious approach to travel, suggesting that last-minute travel is less prevalent. Instead, companies are likely planning further in advance to reduce costs and ensure that the trips taken are justified.

HotelHub’s findings also reveal that the average length of stay has changed little in the years since the pandemic, consistently hovering around 2.5 days since 2022. With hybrid working models becoming more widespread, planning travel to coincide with days in the office is an obvious consideration for businesses.

While inflation remains a concern for business travel, HotelHub's findings suggest that the sharp rate increases that have marked the sector over the past two years are starting to slow.

Between April and June this year, the global average rate per night booked through HotelHub was $189 (USD). This is only 3.63% higher than the same period in 2023 – significantly lower than the 9.64% increase seen between Q2 2022 and Q2 2023 or the 7.92% seen in Q1 2024. Rates in many major shopping centres remain well above the global average but, overall, the year-on-year increases seen in previous periods are also decreasing.

In New York, the average booked rate in the second quarter was $432 per night, up 5% from $411 in the same period last year; however, this is a significant improvement over the nearly 12% increase seen in the first quarter of 2024.

Meanwhile, some key business destinations saw almost negligible changes between Q2 2023 and Q2 2024, including Stockholm and Chicago which showed no change in their average fares ($199 and $317, respectively) and Paris which went from an average of $251 in Q2 2023 to $250 in the same period this year.

Paul Raymond, Business Development Director at HotelHub, commented:

“It is encouraging to see signs of a slowdown in the rate growth trajectory; however, we are still in a period of uncertainty for the global economy and, with the US elections approaching, it may be some time before we know whether this trend will continue.

It’s understandable that many businesses are taking a more conservative approach to travel and we continue to work with our partners to navigate this changing landscape by providing flexible booking technologies that strengthen travel policies and optimize cost-saving opportunities.