Hotel Revolution: Corporate Travel Managers’ New Approach

Priyal DuttaUpdated 2 days Ago3 Mins read50 Views

Hotel Revolution: Corporate Travel Managers’ New Approach

Inside the Modern Hotel Program

Redefining Strategy: Modern Hotel Programs Unveiled

As managed hotel programs undergo fast transformation, businesses and corporate travel managers are reconsidering how they source, negotiate, and manage hotel stays. Travel buyers want to adopt more flexible rate strategies, update request-for-proposal (RFP) processes, and meet the expectations of a next-generation workforce—all while negotiating rising prices and chronic program gaps.

The Global Business Travel Association (GBTA), the world’s largest business travel association, has released new research in partnership with Radisson Hotel Group, one of the largest hotel groups in EMEA and APAC, with over 1,565 hotels in operation and under development in over 100 countries. According to the research “The Evolution of Managed Hotel Programs,” corporate travel managers are looking for innovative ways to improve the hotel procurement process, as annual practices are antiquated, costly, and inefficient.

“This research conducted by GBTA and made possible by the Radisson Hotel Group provides essential insights into the dynamics facing hotel programs today. Travel managers must continue to adapt their strategies in response to shifting business needs, rising costs, and changing traveler expectations to be able to build more resilient and responsive programs for the future,” said Suzanne Neufang, CEO, GBTA.

“In today’s fast-changing travel landscape, our partners are under more pressure than ever to balance value, compliance, and traveler satisfaction. This whitepaper, developed in partnership with GBTA, reflects our deep commitment to supporting travel managers with the insights, benchmarks, and strategies they need to build smarter, more resilient travel programs. As personalization, dynamic pricing, and tech-driven expectations reshape the corporate travel experience, we’re here to help businesses navigate the complexity and turn it into opportunity,” said Johanna Wessman Fresnel, Senior Director & Head of Global Accounts, Radisson Hotel Group.

Decision Influencers: Company-Negotiated Rates, Proximity and Traveller Preferences

When travel buyers sit down to make a list of their preferred hotels, their decision-making process is simple—and incredibly strategic. Price remains king, with 83% preferring company-negotiated rates, discounts, and fixed price agreements. However, location comes in second: 82% choose premises near their own offices, while 44% prefer to be close to customer locations.

Behind the scenes, travel managers strive to strike a balance between flexibility and budgetary control. Dynamic pricing methods (77%) and chain-wide reductions (74%) are gaining traction. In fact, half of travel managers believe dynamic pricing is the fastest-growing strategy in their programs. Nonetheless, a clear preference has emerged: 60% believe the optimal structure is a hybrid model, which combines fixed and dynamic rates at the property level to provide both savings and agility.

Meanwhile, employees are becoming increasingly involved in the process. According to travel managers, approximately 57% of trips now take place at hotels with employer-negotiated prices, demonstrating that employees are actively looking for value and consistency with company policy.

Looking ahead, 78% of travel managers anticipate younger generations (Gen Z and Gen Alpha) will impact hotel booking habits. These growing business visitors are likely to prioritize ease of booking (79%), as well as tech-forward hotel experiences (61%).

Opportunities for Innovation in the Hospitality Process

Many travel managers are interested in a variety of RFP innovations, including multi-year fixed rate agreements (64% are interested or have signed an agreement), spend-based targets (60%), share-based targets (50%), and evergreen dynamic arrangements (52%).

Online booking tools (OBTs) are also playing an increasingly important role, with 42% reporting that OBT hotel reservations grew in the previous year and 74% expecting an increase in the next three years. Furthermore, over the last year, a greater proportion of purchasers report that direct (34%) and Online Travel Agency (OTA) (28%) reservations are declining.

Addressing the Gaps for Travel Managers

Travel managers say that their programs have gaps in specific cities, with availability gaps (25%) and desired coverage gaps (21%) being the most common. The cities with the largest gaps are London, Paris, Berlin, Amsterdam, and Dubai.

While 44% of travel managers see gaps in the hotel procurement environment, notably in terms of sustainability (57%), expenditure requirements (55%), and carbon monitoring (51%), the importance of benchmarks is becoming more widely recognized. Half of customers (52%) find sustainability criteria useful, yet a significant percentage are unsure (29%) or unconvinced (18%).

Sourcing the Best Rates and Options

Non-Global Distribution System (GDS) channels are gaining popularity, with 62% of travel managers noting lower pricing and more options as significant advantages. Other benefits include higher rating accuracy (36%), improved purchasing experiences (31%), and increased flexibility (31%). While almost all travel managers (93%) claim that their Travel Management Company (TMC) has its own preferred rates, only 39% of travel programs perform TMC or OBT audits numerous times per year and have strong monitoring in place.

Outlook for 2025 Business Travel Spending

Three out of four (77%) corporate travel managers polled predict their business travel spending to be greater or equal in 2025 compared to 2024. Of those, 67% say rising travel prices, firm expansion (55%), and increasing staff travel (54%), are the primary causes for increased spending.

Methodology

From April 29 to May 5, 2025, 234 responses were received from travel managers in the United States and Europe (Austria, Denmark, Finland, France, Germany, Ireland, Italy, Lithuania, Luxembourg, Netherlands, Norway, Poland, Portugal, Slovakia, Spain, Sweden, Switzerland, and the United Kingdom).

Written by

Priyal Dutta - Senior Correspondent/Content Writer

I create compelling stories that showcase the travel, hospitality, and lifestyle industries. At Safari India, I explore industry trends, write insightful articles, and produce content that informs and engages readers. With a talent for storytelling and a strategic approach, I strive to inform, inspire, and spark meaningful conversations through my work.