Hotel room rates in many major cities around the world are expected to continue their skyward climb in 2024—rising by double-digit percentages in many places, according to the Hotel Monitor 2024, a forecast from American Express Global Business Travel (aka Amex GBT).
In considering hotel prices in more than 80 cities, analysts relied on figures from Amex GBT's "vast data lake" (which sounds like the setting for the least fun summer camp ever) as well as inflation forecasts from the International Monetary Fund. Valid criteria included "currently listed prices, broader macroeconomic trends, projected hotel openings, and historical data," reports Bloomberg.
Taking all that into account, the report predicts that the city that will see the highest year-over-year increase in hotel prices for 2024 will be Buenos Aires, Argentina, with a jump in hotel rates of 17.5%.
That's a consequence of the historic inflation Argentina is experiencing, though the seemingly dramatic increase expected in hotel prices in the capital city next year won't necessarily make the destination too expensive to visit for travelers from countries with stronger currencies.
"Since the Amex study calculates rate increases in local currency," as Bloomberg points out, "the rising prices in Buenos Aires are still likely to translate to deep savings for most people visiting from abroad."
Elsewhere in the world, hotel rates will climb, per the Amex study, because of an uptick in demand.
That's what's likely pushing room rates upward in India, where a currently booming economy will probably result in higher hotel prices in Mumbai (expected to increase by 15%), Chennai (up 14.6%), and Delhi (12%).
The U.S. city expected to see the sharpest spike in hotel room prices? That would be Chicago (pictured above). Analysts foresee the return of major trade shows and other events in 2024 that lead to more business travel in Chicago. But all that demand is expected to drive hotel prices up by more than 12% compared to 2023.
The next highest U.S. increase is forecast for Boston, up 11%.
Another destination where higher demand is expected to result in higher hotel rates is Paris, where the 2024 Summer Olympic Games will "significantly impact hotel availability and price," according to the report, causing room rates to "double or even triple" in July and August. All told, the French capital's hotel rates are predicted to increase by 11% for the year.
Other cities where the report projects hotel rate increases of double-digit percentages include Cairo (up 14.6%), Bogotá, Colombia (up 14.1%), Jakarta, Indonesia (up 10.9%), and Amsterdam (up 10.8%).
To see the full Hotel Monitor 2024, along with trends, insights, and data broken down by geographical region, go to Amex GBT's website.