Cost of Business Travel to Rise in 2008

The cost of business travel from the UK is likely to rise this year, a leading travel management company has warned. The prediction came from Hogg Robinson Group with the release of its 2007 Hotel Survey.

The strength of the pound benefited UK execs when traveling to certain overseas countries last year, helping to cushion the impact of significant local currency room rate rises. For example, a 24 percent local currency rate rise in Johannesburg equated to a more affordable 10 percent when converted to GBP, the report said.

Moscow emerged as the most expensive destination worldwide for the third consecutive year, according to the survey.

The Russian capital posted a “staggering” 93 percent rise in average hotel rates since 2004. The average rate in 2007 was almost £250, an 11 percent rise year-on-year, compared with London in tenth place at £154.

New York City hotels were the second most expensive for business travelers at £192 followed by Paris (£171), Dubai (£164), Milan (£164), Stockholm (£160), Mumbai (£160), Bangalore (£159), Hong Kong (£154) and then London.

The U.S. reported mixed results, in part due to weak dollar exchange rate and economic concerns, particularly in the last quarter. New York retained its position as the second most expensive city worldwide.

Only five of the 50 cities surveyed recorded a decline in rates in 2007, largely attributable to maturing local markets or a significant increase in room capacity and availability. Rates in Bangalore and Philadelphia dropped by 5 percent, Tokyo and Bristol were down 2 percent and Liverpool fell by just 1 percent.