Welcome to Hotel Disruption

There are a lot more options in sourcing accommodations – and a lot more challenges
Artificial intelligence, chatbots, data analytics, continuous sourcing, global connectivity, dynamic pricing, outsourcing…

Corporate hotel programs have often been criticized as stagnant and unchanging – not responsive to a rapidly changing industry. But that contention is being challenged with rapid-fire innovations like these and others yet on the horizon, disrupting the landscape.

While some may have hoped for some single seismic shift, this multitude of targeted transformations is painting a new picture of what a hotel program is. But to put these innovations in context, first start with a quick overview of where the hotel industry is and how that is affecting relationships with corporate clients.

The most obvious headline is that lodging is doing just fine, thank you. In fact, Lukasz Dabrowski, senior vice president of hotel solutions for HRS, says corporate programs will be challenged to keep hotel costs from rising too much in 2019. Blockbuster industry growth in the last two years is resulting in overall global spend rising 5.8 percent in 2017 and a “stunning” 7.1 percent this year, he notes, and with limited new supply coming online in many top business city centers.

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Categories: Special ReportLodging

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