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

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

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