As Rates Fall, Corporate Travel Buyers And Hoteliers Go Back To The Table

Hotel average daily rates took a hit in many markets over the past couple of weeks as cancelations rolled in. That means deals for those traveling for business. However, it also throws the relative position of negotiated corporate rates out of whack. Travel procurement professionals and hotels are reconsidering not only the pricing that many of them only just settled on for 2020 but also various parameters around those rates.

Buyers spoke to The Company Dime on the condition of anonymity. They reported some success in getting preferred hotels to reduce rates and adjust minimum . . .

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Jay Campbell

Author: Jay Campbell

Jay Campbell in 2004 created travel business newsletter The Beat, in 2006 co-founded Travel Procurement magazine and in 2010 integrated them with Business Travel News. He served as editorial director until 2013. Jay made his travel industry media debut in 1993 at the Air Travel Journal of Boston while earning his undergraduate degree in journalism at Boston University.

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Caroline StrachanLarry Silman Recent comment authors
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Larry Silman
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Larry Silman

Really, Steve? For buyers, this is a “great opportunity to … obtain better discounts,” but online agencies will charge hotels “a fortune for the bookings”? If memory serves, those online agencies played a huge role in helping hotels recover from the 2008 crisis and will work with suppliers even closer to support a robust recovery once we all get through this challenging time.

Caroline Strachan
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I like Susan’s advice. Taking advantage of this situation to lower hotel rates is not good. Those buyers with good track records and years of experience will know who to call upon now and reassure hoteliers they have their backs. Those hoteliers who have earned their trust and depth of relationship over the years.