Brace yourselves for yet another challenging period of hotel negotiations. As the annual Hotel RFP season rolls around, your organization could be in for a rickety ride without the proper preparation.
As many buyers coordinate their upcoming hotel Request for Proposal submissions, the impending demands of negotiation season loom ahead, with current hospitality industry conditions ceding hotels the upper hand. As corporate booking demand has been consistently climbing—reserved group occupancy for 2015 is up 2.3 percent from the year prior—a consequential hike in pricing is no surprise. What’s more, suppliers do not seem to be shy about what these changes mean for partner program participants in the least.
In fact, hotel CEOs have warned companies they are doing everything they can to maximize their revenue via increases in corporate and group rates. A recent report from the 2015 Hotel Data Conference in Nashville cited by Business Travel News reveals:
- Average daily U.S. hotel rates will see a 5.1% increase this year.
- Nevertheless, occupancy will rise by 1.7%.
- And despite a projected slowdown in demand next year, it will outweigh supply growth and average daily rates are still expected to increase by an additional 5.2%.
This data then begs the question: is your company really ready for Hotel RFP season? With that said, there are effective ways your company can navigate these fluctuations and proactively combat the rise in business booking rates. Check out these five handy tips below for answers:Read More