According to the report, initial corporate housing price increases of up to 50% in key World Cup locations have eased significantly, with some markets now recording increases of around 15% as additional supply enters the market ahead of the tournament, which begins on 11 June in Mexico.
The report also identified strong growth in China, where corporate housing spend increased by 278% year-on-year and nights booked rose by 166% compared with the same period last year.
SilverDoor attributes part of this growth to eased entry requirements, including visa-free travel for up to 30 days for nationals of countries such as the United Kingdom and Canada, as well as the introduction of the K visa programme for global science and engineering graduates.
Corporate housing rates soften in World Cup destinations
In the Americas, previously anticipated accommodation price increases linked to FIFA World Cup host cities have moderated.
Locations in California, including Los Angeles and Palo Alto, where rates had initially risen by as much as 50%, are now recording increases closer to 15%. Similar trends have been observed in Dallas, Houston, Toronto and destinations across Mexico, where rates are moving towards more standard levels.
In Asia Pacific, India continues to record strong growth in demand. Enquiries increased by 114% year-on-year, while reservations rose by 457%, driven by sectors including technology, banking, financial services, insurance and healthcare.
As accommodation supply increases to meet demand, average daily rates in some Indian cities have declined. Bengaluru recorded a 23% year-on-year decrease in average daily rate.
China also experienced strong demand growth during the quarter, with increased searches for accommodation in cities including Shanghai, Beijing,
Chengdu, Guangzhou and Wuxi
The report notes that economic growth linked to sustainable technology exports, including electric vehicles, is contributing to increased corporate travel demand, particularly for larger group bookings. Corporate accommodation enquiries in China increased by 36% year-on-year during the quarter.
Regional trends across EMEA
Within Europe, the Middle East and Africa, London recorded a 26% increase in bookings as companies continue investing in their presence in the city and office attendance policies expand.
Average daily rates in London increased by 11% year-on-year and are expected to remain elevated during the summer period.
In contrast, Zurich recorded a 6% year-on-year decline in average daily rate, a trend that may support increased corporate travel and mobility activity in the coming months.
The report also identified a 14% year-on-year decline in enquiries across the Middle East during the second quarter. According to SilverDoor, some companies based in Dubai are increasingly favouring employee relocations within the United Arab Emirates rather than across national borders, with destinations such as Al Ain, Ras Al-Khaimah and Fujairah attracting interest.
Claire Barrie, Chief Commercial Officer of SilverDoor, said: “The various trends and market conditions that are shaping corporate travel right now, like oil price volatility, immigration backlogs, major sport tourism events, and workforce restructurings, are influencing global demand patterns in interesting ways right now. Resilient programmes that are built to absorb this sort of disruption will pull ahead, and the competitive differentiator is usually how well-connected your supply chain is before a disrupter hits, not during it.
As for the imminent FIFA World Cup: since original predictions of sky-high rates and sold-out cities, this quarter’s data reinforces that corporates who can hold their nerve where they can, be swift to react to inventory releases, and use late-stage negotiating power can secure better rates and value in high-demand markets. Businesses still keen to travel during the World Cup in host cities look set to be able to take advantage of the recent softening of corporate housing rates and should apply this blueprint to future major events like the LA28 Olympics.”
Tags: Claire Barrie, SilverDoor
