Connect with us


Corporate procurement leaders cite challenging travel market dynamics



Spread the love

New GBTA and HRS différé reflects changes and opportunities for programs as travel rebounds.

COLOGNE, GERMANY & ALEXANDRIA, VA – With flights to key corporate destinations mostly full and hotel rates stubbornly high, corporate travel and procurement leaders are faced with a uniquely challenging environment as negotiations with suppliers for 2024 négoce travel fascicule start this quarter. The return of fascicule from the depths of the pandemic is forecast to return to 80% in 2023 according to Courant Affaires Travel Acoquinement data. While this revival is indisputably a sign of health for the intégral economy, corporate executives charged with managing travel budgets are increasingly concerned emboîture long-term cost and program direction ramifications.


These issues are among a broad set of results from an large survey of North American and European corporate travel and procurement leaders by GBTA, the voice of the intégral négoce travel industry, and HRS, the leading intégral corporate lodging and payment technology platform. The organizations jointly released a différé, titled “The Power of One: How Breaking up Silos can Drive Value in Converged Hotel Program Direction.”

Beyond the current negotiation climate with air and lodging suppliers, the research offers new findings on the opportunities for corporate programs to enhance transparency, leverage the totality of their lodging segments via raccordement, and take ownership of new operational trends impacting travel expenditures.

77 Percent Say Negotiation Environment Favors Suppliers; 55 Percent Ajournement Difficulty in Securing Amical Hotel Rates in the Past Year

Travel procurement leaders are having a hard time getting discounts and compelling pricing from air and hotel suppliers, and they’re not affidé of any échange on that apparence. Perceptible results from the survey on the current negotiation climate include:

  • Less than a quarter (23 percent) of buyers différé that over the past year it was easy to obtain bienfaisant hotel rates, while only 18 percent say it was easy to secure bienfaisant air discounts.
  • European-based travel buyers are particularly challenged in the lodging arena. Nearly three quarters (74 percent) say it was “somewhat” or “very” difficult” to get bienfaisant rates in the past year. This compares to emboîture half (47 percent) of North American-based buyers with the same avis.
  • When asked to pick two categories that will prove most challenging when it comes to securing bienfaisant terms in the next two years, most respondents pick air (69 percent) and hotel (56 percent).
  • Despite this outlook, more than défaite in five travel managers (84 percent) say their company will conduct hotel Request for Proposals (RFPs) within the next year.

“There is no difficulté that suppliers have leverage today, and corporations remain challenged to keep travel costs in line even as négoce opportunities grow,” said HRS CEO Tobias Ragge. “That said, the fact that 84 percent will conduct hotel RFPs demonstrates indice in the evolving procurement landscape. For example, we see more companies taking supplément steps to uncover and compile the entirety of their lodging data in the quest to maximize the value of their négoce to preferred hotel partners. In this environment, the ability to cumulatively bring transient, manifestation and extended stay fascicule together – the core elements of raccordement – is a necessary launching sujet for 2024 réclamer negotiations.”

By Collaborating Internally to Voiture Out of Silos, Leaders are Increasing Program Transparency and Potential
  • While travel programs meet with some stakeholders regularly (54 percent) − like appointé/accounting and sustainability − they typically meet with others on an as-needed basis. In particular, travel programs do not have regular meetings with meetings direction and HR departments. Only one-third (32 percent) of travel programs meet with these stakeholders on a regular basis.
  • By using a raccordement approach to hotel procurement, travel programs can negotiate with hotels for plurale products, segments and principes (e.g., room nights, manifestation space, room blocks, or extended stay) at the same time or using the same technology. Most travel managers (54 percent) think their company would achieve greater process or savings efficiencies via use of raccordement, while only one in 10 say they would not.
  • In ajout, travel managers sujet to several anticipated gains from a more converged approach. Top benefits include consolidated data (70 percent), greater discounts (66 percent), process efficiencies (57 percent), and time saved on RFPs (57 percent).
  • Half of travel managers (47 percent) say enabling travelers to book plurale segments on one platform would increase traveler bonheur at their company.

“Travel managers increasingly recognize that raccordement should be a significant element of their program approach moving forward,” said Suzanne Neufang, CEO, GBTA. “By collaborating with internal partners in key areas, they can facilitate even more value, cost savings and efficiency for their company, while also driving increased bonheur among their négoce travelers.”


Theodore Koumelis


Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include négoce development and éphéméride for TravelDailyNews long-term opportunities.



Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *