Hotel room prices to go up 3.2%

Hotel groups' consolidation may result in fewer pricing options.

Singapore tourists should start bracing for costly accommodation in the city as hotel prices are expected to increase by 3.2% next year.

According to a study by the Carlson Wagonlit Travel, this is a smaller increase compared to prices in Asia Pacific and globally. In Asia Pacific, hotel prices are expected to see a rise in 3.5% in prices, on the back of higher demand from strong local economies.

Meanwhile, global hotel prices are expected to increase 3.7% on average in 2018, although the expected change in each region is actually quite different.

"Consolidation among the hotel groups may result in fewer competitive price options typically seen in more fragmented markets, thus contributing to hotel price increases in high volume markets like Singapore, Bangkok, Beijing, and Shanghai," the study noted.