Corporate Hotel Rate Negotiations 2009 - The Story So Far

By: Hotelscene  03/02/2009
Keywords: Accommodation, Business Travel, corporate travel

Preliminary analysis of Hotelscene's negotiation performance shows the value of strong travel management.

Going into Hotelscene's final supplier negotiations late last year, estimates were that corporate hotel rates were unlikely to rise substantially but would also not fall dramatically either.  Overall the estimates were for hotel rates outside London to range from ‘flat’ year on year up to a maximum of +4%.  For London, the estimate was for increases to be no more than 4-6%.  

However, for clients with strong travel-management able to deliver market share and steer business to a smaller number of preferred suppliers, Hotelscene have been able to achieve much lower increases, with some clients seeing year-on-year rate reductions.  In the UK, calculations were hit slightly by the last-minute reduction in VAT, but overall rate increases in the major cities have been modest.  Preliminary analysis shows average rate changes for our clients in London at -1.03%, in Birmingham at 0%, at in Manchester at -2.35%.  A detailed analysis of Hotelscene’s rate performance will be available shortly.  

Keywords: Accommodation, Business Travel, corporate travel, Hotel booking agency, Hotel Booking Agents