Hotel Prices Stabilise – But the Average Hides the Real Story

In September 2025, CDS predicted that hotel prices would stay almost flat at around +1.5%. One year later, that forecast has proved correct.

After a cumulative rise of nearly 27% between 2022 and 2024, the hotel market has entered a new phase. On average, prices are stabilising. That average, however, hides large differences depending on the city, the dates and the events taking place.

The latest EPSA barometer on business travel, which Ziad Minkara contributed to and which was covered by Les Echos, confirms that business travel is holding up despite inflation. Hotels remain central to business travel. They are one of the most strategic spend categories, and also one of the easiest to control.

Understanding how prices are set

To control hotel spend, companies first need to understand how rates are formed. "Data is essential, but so is vision," says Ziad. Hotel rates do not depend only on inflation. They are driven mainly by demand and occupancy levels:

• At 50% occupancy, there is still room to negotiate.

• Above 80%, the balance of power shifts to the hotel.

• Above 90%, prices can be multiplied by up to 1.8.

  
  

Discussions at IFTM Top Resa made the same point. Managing a hotel programme is no longer about negotiating one average annual rate. It means reading the market, understanding where the pressure points are, and turning data into concrete decisions.

A new idea: the "traveller credit"

Ziad suggests going one step further. When an employee books well below the hotel cap in their travel policy, part of the saving could go into a notional credit. The traveller could then use it for extra flexibility when they have to travel during a period of high demand.

The approach would encourage travellers to take more responsibility for their spending. It would help control costs over time, and it would bring travel policies closer to how the market actually works.

"Is the industry ready to explore this?" he asks. "I'd be very interested to hear what travel buyers and travel managers think."

Data for the upcoming RFP season

CDS and MKG publish a hotel barometer every month. With the October–December hotel RFP season approaching, travel managers can ask CDS for the data it makes available for Europe and worldwide through the HotelHub Index.