Demand for hotel rooms would continue to outstrip supply in 21 major cities of Asia Pacific Region, with Bangalore topping the list, followed by Delhi and Mumbai, says an industry study.

As per American Express 2008 Asia Pacific Corporate Hotel Rate Projections and Market Forecast released on Monday, Bangalore is projected to have a 225 per cent increase in the demand for hotel rooms during 2006-08, while it was found to be 44 per cent in Delhi and 30 per cent in Mumbai.

According to the study, in Bangalore occupancy rates were stable at around 70 per cent. Despite poor city infrastructure, the supply would increase dramatically.

In Delhi, occupancy was high and stable, averaging at 80 per cent and there was significant new construction to reduce undersupply and access has been improved by low-cost carrier networks.

Normal occupancy for Mumbai was 75-80 per cent. New supply near commercial centres and major initiatives to develop city into international metropolis were pushing the increase in demand.

The study also found that the increase in demand of hotel rooms would force up the `corporate negotiated rates' in all the major cities in the Asia Pacific region. "Travel managers and procurement professionals will continue to face many challenges when managing hotel expenses. However, there are steps companies can take to enhance their negotiating position," said Prashant Aggarwal, Head of American Express Consulting, Japan, Asia Pacific and Australia.

Apart from rate projections, the analysis also indicated emergence of several new trends that would impact on corporate houses' ability to manage their hotel spend.

Firstly, new generation of travellers, willing to spend more on better facilities, were stimulating the supply of newer types of rooms and styles of hotels. Traveller demands were increasing and these include the full spectrum of modern technologies and lifestyle options from wireless Internet access to health services. This has introduced a wider range of innovative accommodation styles including cabin style, express style, boutique guesthouses and serviced apartments.

Customers are increasingly considering a supplier's corporate social responsibility practices and hotels are responding positively to this, the study found. Further, hotels were increasingly introducing dynamic pricing models to enhance their competitiveness, flexibility and occupancy without sacrificing their rate integrity.