Silicon Valley causes business travel boom, HPI
Monday 21, May 2012
Explosive growth of US tech companies causes hotel prices to rocket
Savvy hoteliers in Silicon Valley are cashing in on business travel as hotel prices increased a whopping 27 per cent in the home of Facebook, according to the latest Hotels.com Hotel Price Index™ (HPI®).
The Index, now in itseighth year, chronicles the actual prices paid by travellers in more than 142,000 hotels across the world.
Palo Alto hotels were the eighth most expensive in the world, with an average price of £151 per night, second only to New York as the most expensive of the US business hubs.
The home of Silicon Valley venture capitalists and companies such as Facebook and Google was one of the biggest risers of the report after technology IPOs were once again rumoured to be on the horizon.
In general, conference and convention centres across the States saw big price rises as the US economic recovery started to gather pace in 2011. San Francisco saw a rise of 14 per cent, to an average £113 per night, whilst Dallas and Las Vegas increased by 13 (to £92) and 11 per cent (to £78) respectively. Boston was up seven per cent to £137 and Chicago increased by six per cent to £109 per night. New York remained the most expensive after a rise of four per cent to £173 per night.
Globally, the strength of the BRIC economies of Brazil, Russia, India and China was also largely reflected in hotel rates as corporate demand increased along with domestic custom. Sao Paulo grew seven per cent to £126, Moscow rose nine per cent to £164, St Petersburg increased eight per cent to £113 and Mumbai rose four per cent to £111, whereas Hong Kong climbed 18 per cent to £119.
Nigel Pocklington, chief marketing officer at Hotels.com said: “Business travel declined in the middle of the financial crisis. But with companies like Facebook and Google going from strength to strength, so too does the travelindustry particularly in business hotspots. Palo Alto in particular has seen a huge increase due to the strength of both the tech sector and popular references such as ‘The Social Network’.
“Furthermore, with Facebook’s upcoming IPO and valuations reported to be a record high, it’s likely that Palo Alto will see an even greater influx of business travel in 2012.”
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