Hilton Gains Corporate Share as Travel Patterns Shift
Research from TripBAM shows more stays away from cities and more booking of standard rates >>
by: Harvey Chipkin
Hilton is gaining corporate market share over Marriott and business travel patterns are shifting away from cities toward more suburban and rural properties, according to a new survey from TripBAM, the hotel shopping and analytics company. The findings are detailed in the first edition of a new report series, the TripBAM Quarterly Market Report, which will analyze a fresh set of data and market trends in each installment. Other trends TRIPBAM has identified include: corporate travelers are booking negotiated static/flat rates less often (down 37% year over year) and are instead booking standard rates the most (up 46% year over year); the average star rating of hotels booked has decreased by 0.4 compared to the same period last year; the average length of stay has increased by one day to 3.6 days and the average number of days booked in advance has increased by five days year over year, from nine to 14 days. The report suggests that Hilton is gaining because its properties are more weighted toward lower-starred properties and non-urban locations. It advises travel managers to: obtain discounts before rates and occupancy start to increase; stay flexible with a versatile sourcing solution to be ready with negotiated rates when non-essential travel bounces back later in the year; and establish deals with downscale properties as needed. If a program includes extended stay and/or two- and three-star hotels in suburban or rural areas, know that these properties have been able to better weather the storm and could be less likely to negotiate than in years past. Finally, manage through high-rate volatility, which is almost double what it was in 2019 at 18% and expected to stay high through the rest of 2021, by continuously auditing booked rates and rebooking where savings can be found.