Corporate hotel rates keep rising. Across HotelHub’s 2024 first-quarter bookings, the average daily rate increased 8 percent year-over-year to $177. In New York, ADR jumped 12 percent to $338.

Other markets experiencing a higher average rate included Bengaluru ($146, up 13 percent), Houston ($217, up 6 percent), London ($292, up 9 percent), Milan ($187, up 6 percent) and Paris ($213, up 6 percent).

Higher attachment rates contributed to volume growth, according to HotelHub’s report.

Meanwhile, global corporate hotel booking volume continued to build, but pressure on consumer spending and hotel rate hikes have companies keeping travelers closer to home and extending trips to get a bigger bang for their buck. 

HotelHub’s first-quarter index, based on nearly 2 million bookings “made for the purpose of business travel,” showed a 6 percent year-over-year volume increase. Domestic bookings were up while stays outside the traveler’s home country plummeted by 19 percent. In North America, which accounted for 30 percent of the sample, 81 percent of hotel bookings were for domestic trips, up from 77 percent a year earlier.

More domestic bookings as a proportion of the total “could be an indication that corporates are embarking on greater sustainability initiatives to cut carbon footprints,” according to the report. “However, it is likely a reflection of the financial strain of the past couple of years as companies look to cut travel costs.”

See more reporting on demand trends, as well as more info and data on hotel rates.