Corporate Travel Managers Shift Focus in Hotel RFPs to Strategic Value and Sustainability

What's Happening?

Corporate travel managers are evolving their strategies for sourcing hotels and meeting venues, focusing on broader strategic goals such as sustainability and traveler satisfaction. A survey by the Global Business Travel Association and Cvent highlights this shift, showing a preference for structured RFP processes. Approximately 63% of travel managers engage in formal RFPs, with larger companies and European firms more likely to use structured methods. The survey indicates that fixed rates remain a cornerstone of managed hotel programs, despite interest in dynamic rates. The role of RFPs is expanding beyond cost savings to include objectives like employee satisfaction and carbon emission reduction.

Why It's Important?

The shift in focus from cost savings to strategic value in corporate travel sourcing reflects broader industry trends towards sustainability and employee well-being. This evolution is crucial for building resilient travel programs that align with company goals. Structured RFPs provide stability and consistency, helping companies manage risks and negotiate better terms. The emphasis on sustainability and satisfaction can enhance corporate reputation and attract talent, while also contributing to environmental goals. The findings highlight the need for improved managed meeting programs, which can lead to significant cost savings and better negotiation outcomes.

Beyond the Headlines

The move towards strategic sourcing in corporate travel may influence broader industry practices, encouraging hotels to offer more sustainable options and amenities. This trend could lead to increased collaboration between travel managers and hospitality providers to develop innovative solutions that meet evolving corporate needs. The focus on sustainability aligns with global efforts to reduce carbon footprints, potentially driving long-term changes in travel and hospitality sectors.