The Caterer
Jacobs Media Group is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

Business spend falls for budget hotels, but average hotel spend rises

22 March 2006

Use of budget hotels by business travellers has fallen for the third consecutive year but average hotel spend has continued to rise, new research has revealed.

The study by Barclaycard Business found that just 58% of business travellers had stayed in a budget hotel over the past year, compared with 61% in 2004 and 69% in 2003.

However, it was not all bad news, as average hotel spend per night increased from £93 in 2004, to £100 in 2005.

A spokesman for Barclaycard Business said: "Although budget hotel use appears to be in decline, we predict a levelling off in future years."

"They offer a very different service to premium business hotels and continue to be an excellent resource for companies. It is encouraging to see that each offering has its own place in the business travel market," he added.

The research showed nearly 80% of business travellers picked hotels based on price and location.

Other influencing factors cited were facilities, company policy, loyalty schemes and company travel management recommendations.

Half of respondents who stayed in budget hotels said they chose them because they had adequate services and 44% said it was down to location. Just over a third (35%) said cost was the main factor.

By Emily Manson

Get your copy of Caterer and Hotelkeeper every week -

Sudoku Join the craze and play Sudoku online!
TagsTrends
The Caterer Breakfast Briefing Email

Start the working day with The Caterer’s free breakfast briefing email

Sign Up and manage your preferences below

Check mark icon
Thank you

You have successfully signed up for the Caterer Breakfast Briefing Email and will hear from us soon!

Jacobs Media Group is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.

close

Ad Blocker detected

We have noticed you are using an adblocker and – although we support freedom of choice – we would like to ask you to enable ads on our site. They are an important revenue source which supports free access of our website's content, especially during the COVID-19 crisis.

trade tracker pixel tracking