These Major Destinations Will See Hotel Prices Skyrocket Over The Next Year
Hotel Prices 2023, a study recently released by AMEX (American Express) Global Business Travel, predicted the hotel prices of 25 global business hubs for the coming year.
Since business travel is, well, back in business, the latest Hotel Prices study was conducted to show the potential future costs of hotels in major cities for travelers around the world. A side-effect of an increase in global business travel is that normal travelers will also have to contend with increasing hotel rates in major business destinations.
And in the days of post-pandemic and present-day inflation, it’s no surprise that many of these global cities will be seeing major spikes in hotel prices. From San Francisco and Toronto to Frankfurt, Sao Paulo, and beyond, here’s a list of the major cities by region and how much the cost of hotels is forecasted to go up in 2023
U.S. and Canadian Cities
- Atlanta: The AMEX GBT study predicted that hotel prices in the U.S. city of Atlanta will rise by around 5% in 2023. The Big Peach is one of the country’s biggest hubs and is well-connected because of the Atlanta International Airport, which is the world’s busiest airport.
- Boston: This East Coast city is also expected to see hotel rates rise by 5% in 2023.
- Chicago: With the largest convention center in the U.S., as well as being a hub for meetings, events, and more, hotel prices in Chicago are expected to rise about 4.5% next year.
- New York: No surprise here, but New York City hotel prices are predicted to increase the most of all global business cities in the United States at a rate forecast of 8.2%. The study noted that while leisure travel in New York is back bigger than ever, business travel has been slow to rebound. But anyone who is traveling to New York City next year should expect hotel prices to go up even more.
- San Francisco: California’s tech and business hub comes in third place, with a rate forecast of 7.3%.
- Seattle: The Pacific Coast’s Emerald City came in second place for the United States in the study, with a rate forecast of 7.5%.
- Toronto: With the Canadian land and air borders open for international travelers and hotel construction projects in the works, expect Toronto’s hotel prices to rise about 6.5% in 2023.
- Buenos Aires: Inflation in the Argentinian capital is through the roof (expected to reach 90.2% this year, according to the country’s Central Bank). Taking this into account, it’s predicted that the cost of a hotel in Buenos Aires will rise by a whopping 30% in 2023.
- Mexico City: North America’s largest city and the most important business center of the continent will continue to welcome business travelers as it has with leisure travelers from all over the world. In 2023, it’s expected that hotel prices in the Mexican capital city will increase by about 6.8%.
- Sao Paulo: Taking cost factors like inflation and traveler demand into account, hotel prices in Brazil’s commerce capital are expected to rise by 7.7% in 2023.
Hotel Prices In Europe
- Amsterdam: This European hub saw tourist arrivals go up by 400% in the first five months of 2022 compared to 2021. With increased traveler demand and inflation thrown into the mix, the price of hotels in Amsterdam is expected to rise by about 7.5% in 2023.
- Dublin: Travel in Ireland is back in full swing. Expect hotel prices to rise by about 8.5% next year.
- Frankfurt: Germany’s business hub expects hotel prices to increase by approximately 7.5% in 2023.
- London: Hotel price rates in London are assumed to go up by about 6.2% next year.
- Paris: The French capital of Paris is predicted to see the highest rise in hotel prices of all the business hubs in Europe, with a rate forecast of about 10% in 2023.
- Stockholm: Coming in second place for rising hotel prices is Stockholm, where it’s predicted that costs for travelers will increase by around 9% in 2023.
Price Predictions For Middle East & Africa
- Dubai: For visits to Dubai, expect hotel rates to increase by around 7% in 2023.
- Johannesburg: The cost of hotels in South Africa’s business hub is predicted to increase also by about 7% next year.
- Tel Aviv: Lots of new hotel properties are being built in Tel Aviv, and more accommodation options for travelers are expected within the next few years. In 2023, hotel prices are predicted to go up by only 0.9%.
Hotel Price Predictions For Asia Pacific In 2023
On a global scale, the Asia Pacific region has the lowest price increase predicted for 2023. Here are some of the highlights:
- Bangalore: Rate forecast of approximately 5.5%.
- Hong Kong: Hotel rate increase forecast of around 1.3%.
- Melbourne: Rate increase of around 1.2%.
- Singapore: Hotel price increase of about 3.9%.
- Sydney: Hotel rate forecast of about 4.3% in the Australian capital city.
- Tokyo: Expect hotel prices to go up by about 3% in Tokyo next year.