Categories: Special ReportIndustry Interview

Room For Negotiation

New hotel sourcing models are gaining traction and ACTE research shows the change can do your program good
For decades, one of the primary missions for many travel managers was the annual autumnal rite of hotel sourcing. This once-a-year negotiation strategy worked well enough for a number of years, but markets change. In today’s rapidly evolving business travel climate, the demand is for different approaches more responsive to specific hotel sourcing needs across a range of travel programs.

As a consequence, according to a new global survey on hotel sourcing from the Association of Corporate Travel Executives, over half (51 percent) of travel managers have changed their negotiation process in the last three years. The poll of 226 corporate travel executives worldwide found that among those who changed their negotiation strategy, the most common changes were starting to work with a travel management company (31 percent) and starting to work with a third-party specialist (29 percent).

The research found the majority of those who made a change reported financial savings and non-financial benefits, regardless of the type of change they made. The money saved on hotel costs ranged from an average of 4 percent savings for those that started working with a TMC to 8 percent savings among those that moved hotel sourcing in-house.

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