To add to the frenzy of the yuletide holidays comes every travel manager’s favorite time of year, hotel sourcing season!
So, how can you make it through this magical time of year without wanting to running away to join the circus? Understanding how hotels are managing demand for 2016 and beyond is critical to creating a successful hotel program, so here are some tips to help you through this difficult process:
- Ensure your contracted rate has “Last Room Availability”- 2015 saw a record occupancy rate in the US at around 66% and this trend should continue through 2017 according to PKF Hospitality Research. Because hotels are more in demand than ever, negotiating with properties to ensure your rate includes all available room types is critical in driving savings to your program
- Consolidate Demand – The bigger the demand you can provide to a hotel, the more likely you are to get a competitive rate. Rather than spreading out your room night production over several properties, consider moving your demand to a few properties.
- Remove Negotiated Rates in Small Demand Markets – In markets where your demand is limited, consider using alternative rates, such as Egencia Preferred Rates, to drive savings vs. a non-competitive rate.
By following these tips, travel managers can drive savings, increase traveler satisfaction and most importantly, save their sanity!
Latest Lodging Forecast Extends Record U.S. Occupancy Through 2017 http://www.hospitalitynet.org/news/154000320/4073298.html