kabarsula Hotel prices set to rise, new modelling from American Express Global Business Travel bandar SLOT INDONESIA

Hotel rates in Sydney are forecast to rise by three and a half to five per cent in 2027, according to new modelling from American Express Global Business Travel (Amex GBT), as resilient demand and persistent inflation continue to push prices higher across global business travel markets.

The forecast puts Sydney roughly in line with other resilient markets such as London (+3.6% to +5.4%) and Paris (+3.1% to +4.8%), and ahead of more subdued growth expected in Asian hubs such as Singapore (+0.8% to +1.6%) and Beijing (+1.9% to +3.0%).

The figures come from Amex GBT’s Hotel Monitor 2027, an annual forecast of hotel rates in key business travel destinations, released 22 September. For the first time, the report presents its forecasts as ranges rather than single figures, reflecting geopolitical uncertainty and commodity price volatility.

Amex GBT advises using the lower end of each range if the Middle East conflict does not resolve quickly, or if global inflation tracks the International Monetary Fund’s July World Economic Outlook forecast of 4.7 per cent for 2026. If inflation runs higher than that, the upper end becomes more likely.

Globally, the report points to resilient corporate travel and meetings demand across the Americas and Europe, combined with ongoing inflation, as the key drivers of rising rates – with more moderate increases forecast across Asia-Pacific. The picture is far from uniform, however, with the Middle East conflict continuing to weigh on demand in key Gulf destinations.

Dubai hotel occupancy fell as low as 19.6 per cent in March before recovering to the 40–50 per cent range, and Amex GBT expects hoteliers there to offer competitive rates to win back visitors – forecasting Dubai prices to rise by just one to two per cent in 2027, among the smallest increases of any city in the report.

Mexico City and Paris were highlighted as resilient, in-demand destinations despite modest domestic economic growth, while India was flagged as the country to watch in 2027: projected to be the world’s fastest-growing economy, but with rate growth moderating as hotel room supply improves. Bengaluru is forecast to grow five to five and a half per cent.

The report also points to rising airfares – up 15 per cent year-on-year in mid-2026, and as much as double that on Asia routes – as a factor squeezing travel budgets and reshaping demand into Asia-Pacific, even as business travellers continue to favour premium accommodation over trading down.

“This year’s forecast reveals a nuanced global environment where geopolitical uncertainties and commodity price volatility are shaping hotel rates in different ways across regions,” Amex GBT Consulting director of consulting strategy, Sara Andell, said. “Price is a key indicator, but it doesn’t always tell the full story. We’re encouraging companies to consider what value means to them, and what they are getting from their hotel spend, not just the headline rate.”

The report also highlighted the growing role of artificial intelligence in hotel sourcing, with hotels increasingly using agentic AI to optimise revenue management and rate-setting, while AI-enabled sourcing tools are helping travel managers on the buyer side accelerate decisions and sharpen negotiating positions.