Hotel booking behavior by travelers has been largely unaffected by the cancellation fees introduced by large hotel chains a year ago, according to a report from HRS, the global hotel solutions provider. Analysis of corporate bookings found that the relative number of cancellations increased by 0.9 percent, but the associated additional costs for companies are considerable. The tightened cancellation conditions led to corporations absorbing higher hotel costs – on average 3.8 percent of their total hotel spend. Consequently, corporations negotiating their 2019hotel deals are prioritizing cancellation flexibility because business travelers cite flexibility as a critically important element of any business trip. Companies are looking to minimize their exposure to cancellation and other fees that drive higher incremental hotel costs. In a survey of 100 travel managers, a third said they wanted to negotiate appropriate special conditions to avoid these fees.