Corporate Travel Managers Shift Focus in Hotel RFPs to Strategic Goals

What's Happening?

Corporate travel managers are increasingly prioritizing broader strategic objectives over mere cost savings in their hotel and meeting venue sourcing strategies. This shift is highlighted in a survey by the Global Business Travel Association (GBTA) and Cvent, which reveals a growing emphasis on sustainability, traveler satisfaction, and risk management. The survey, involving corporate travel managers and hotel professionals from the U.S., Canada, and Europe, indicates that structured Request for Proposal (RFP) processes are becoming a strategic tool in managed hotel and meetings programs. Approximately 63% of travel managers engage in formal RFPs, with larger companies and European firms more likely to use this method. The survey also notes that smaller businesses often negotiate outside formal RFP processes, which can lead to less standardization and potential misunderstandings.

Why It's Important?

The evolution of RFP processes in corporate travel management reflects a broader trend towards aligning travel programs with company-wide goals such as sustainability and employee satisfaction. This shift is significant as it suggests a move towards more resilient and value-driven travel programs. By focusing on strategic sourcing, companies can achieve consistency, visibility, and cost savings across hotel and meeting expenditures. The emphasis on structured RFPs also highlights the importance of standardization and stability in corporate travel, which can mitigate risks and enhance negotiation outcomes. This trend could lead to more sustainable and employee-friendly travel policies, benefiting both companies and their employees.

What's Next?

As corporate travel managers continue to adapt their strategies, there may be increased adoption of structured RFP processes, particularly among smaller businesses. Companies are likely to further integrate sustainability and traveler satisfaction into their travel programs, potentially influencing hotel and meeting venue offerings. The focus on strategic sourcing may also drive innovation in the hospitality industry, as hotels seek to align with corporate goals and offer competitive rates and amenities. Additionally, the development of managed meetings programs could see improvements, with more companies adopting defined sourcing processes to achieve cost savings and better negotiation outcomes.

Beyond the Headlines

The shift towards strategic RFP processes in corporate travel management could have long-term implications for the hospitality industry. As companies prioritize sustainability and employee satisfaction, hotels may need to adapt their offerings to meet these demands. This could lead to increased competition among hotels to provide value-added services and amenities. Furthermore, the emphasis on structured RFPs may encourage greater transparency and accountability in the industry, fostering stronger partnerships between corporate travel managers and hotel providers.