Corporate Travel Buyers Facing Tougher Terms
Posted on 27. Jan, 2011 by Kat Schneider Fotheringham in Blog, Business Travel, Uncategorized, corporate housing, executive accommodations, international business travel
It’s a new year and that always means change. So far in 2011 it appears that the economic recovery is continuing, and for corporate travel buyers that means tougher negotiations with hotels for breaks in rates.
What this means for corporate housing owners and managers is this–we often have the ability to be flexible and offer varying rates and perks to our customers, rates and perks not always available as a negotiating chip for large hotel chains.
Right now the average increase in rates being offered by hotels is between 10 and 15 percent, a pretty healthy increase for corporate travel buyers still struggling with wary bosses who are closely watching the bottom line. On average, hotels in New York City are asking for an increase of about 20 percent. A very big change.
Many corporate buyers are reporting that negotiations this year are frequently requiring three or four rounds before a deal amenable to both parties can be struck.
So now’s the time for all of us to rethink our own pricing strategy for 2011, and alter our marketing message a bit in response to what the hotels are offering the customers we are all competing for. Good luck!!
