| Journal: TWUK | Section: |
| Title: | Issue Date: 17/07/00 |
| Author: | Page Number: 6 |
| Copyright: Other |
Amex Index sees rise in popularity of budget accommodation
Hotels set to compete with growth in no-frills
Report by DIANESMITH
LARGEhotel chains are offering business travellers cheaper rates in order to compete with the growth in no-frills accommodation.According to the latest American Express 2000 European Corporate Travel Index, companies are increasingly opting to book both no-frills accommodation and flights as it means they can afford to send four executives in place of one.
And BTI UK managing director Mike Platt said a lot of the big business hotels have reacted by doing special deals.
“To justify high prices, hotels improved the product, but there was a bit of a backlash from some business travellers and a move towards budget hotels.”
However, he added that many UK-based travellers still often look for a brand name when staying overseas.
American Express vice-president hotel relations, Borge Ellgaard said: “The Index confirms a company can afford to send four executives instead of one by choosing budget accommodation in London over premium-rate lodgings.
“In response to this shift in demand, budget and mid-priced hotels have upgraded their facilities and are starting to offer a full range of business amenities such as voicemail, e-mail and Internet access.”
Ellgaard said companies are also looking to large business travel agents for competitive hotel rates and cost savings as hotels are giving them a tougher time at the negotiating table.
The index shows 40% of corporate travellers have used no-frills airlines, with 56% planning to use them during this year.
Companies are also looking to rail as a cost-effective alternative in an effort to cut costs on short-haul trips.
American Express manager of consulting services Matthew Davis said: “If the train is significantly late, the traveller is compensated. This is certainly not the case with airlines on short-haul routes.”
n Eastern Europe will be the focus for the major hotel brands and smaller boutique hotels in 2000/01 – with Hungary and the Czech Republic dominating the expansion.
Platt: said business hotels are looking to compete with budget chains