Corporate Travel Managers Shift Focus to Strategic Goals in Hotel RFPs

What's Happening?

Corporate travel managers are increasingly prioritizing strategic goals such as sustainability and traveler satisfaction in their hotel and meeting venue sourcing processes. This shift is reflected in a recent survey by the Global Business Travel Association (GBTA) and Cvent, which highlights the evolution of request for proposal (RFP) processes. Traditionally focused on cost reduction, RFPs are now being used to achieve broader objectives, including risk management. The survey, which included participants from the U.S., Canada, and Europe, found that structured RFPs are the preferred method for sourcing, with 63% of travel managers engaging in formal RFPs. Smaller businesses often opt for informal negotiations, while larger companies and European firms favor structured RFPs. The survey also noted the drawbacks of informal negotiations, such as less standardization and potential misunderstandings, underscoring the benefits of structured RFPs in providing stability and consistency.

Why It's Important?

The shift towards strategic sourcing in corporate travel reflects broader industry trends and priorities. By focusing on sustainability and traveler satisfaction, companies can align their travel programs with corporate values and goals, potentially enhancing employee satisfaction and reducing carbon emissions. Structured RFPs offer consistency and visibility, which are crucial for managing costs and ensuring competitive rates. The emphasis on strategic goals rather than solely cost savings indicates a maturation of corporate travel management practices, which could lead to more resilient and adaptable travel programs. This evolution may also influence hotel and meeting venue providers to offer more comprehensive packages that align with these strategic objectives.

What's Next?

As corporate travel managers continue to prioritize strategic goals, the industry may see increased adoption of dynamic rates, which offer percentage-based discounts. However, fixed rates remain popular due to the added value of amenities like free breakfast and waived cancellation fees. Companies with well-defined sourcing processes for meetings report significant savings, suggesting that more firms may develop structured programs to optimize costs and improve negotiation outcomes. The focus on strategic sourcing is likely to drive innovation in the industry, with travel managers seeking partnerships that support their broader objectives.

Beyond the Headlines

The evolution of RFPs in corporate travel highlights the growing importance of aligning business practices with sustainability and employee satisfaction. This shift may encourage companies to adopt more environmentally friendly travel options and prioritize employee well-being in their travel policies. The emphasis on strategic goals could also lead to increased collaboration between travel managers and hotel providers to develop solutions that meet these objectives. As the industry adapts to these changes, there may be opportunities for new technologies and services that support strategic sourcing and enhance the travel experience.