Open Door Policy

Good times keep rolling for North America’s hotels, but savvy negotiating can help your program stay afloat
In the US hotel industry today, brands are enhancing technological capabilities through mergers and acquisitions. And while travel programs may pay the price of consolidation via higher rates, industry insiders note TMCs have strong supplier relationships and the ability to secure exclusive rates for clients.

“The impact from mergers may result in a progressive push from suppliers to move corporate buyers away from fixed, negotiated hotel rates and toward dynamic pricing,” says Scott Brennan, Carlson Wagonlit Travel’s chief growth officer and founder of the RoomIt platform. “As the industry moves towards a larger discount off published rates, travel management programs will need to find a way to offer both fixed and dynamic rates with maximum thresholds in low-volume markets.”

According to travel research company STR, hotels in the US have enjoyed 98 consecutive months of RevPAR growth year over year as hotels report continued strong demand from across group, corporate and leisure travelers. Additionally, PwC believes that this year, the stable US economy and government tax stimulus will support the highest occupancy levels since 1981.

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Categories: Special ReportLodging

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