moderate expansion of new room supply, favourable capital costs, and an increase in investor interest,” it says. “The improved outlook for hotel operating results in many major business travel destinations will mean greater pressure on negotiated rates for travel managers and buyers through 2015 and beyond. Whether via rates or through ancillaries, hotel operators will be in a better negotiating position than they have been for quite some time.” In Europe, that fear holds particularly true in the UK, where GBTA/CWT fore- casts rate rises of 3.5 per cent, driven by steep hikes in London. For the region as a whole, it predicts a more modest 1 per cent. All is not lost. Advito suggests several tips for survival in this tougher pricing environment. It continues to emphasise its belief that hotels feel more brittle than they appear. “Don’t submit to hotel demands for large rate rises, especially if your spend with them is substantial,” it urges. “Hold to the rates you think are reasonable and below market levels.” Other advice Advito offers includes negotiating combined deals for transient travellers and meetings with
management, supplier usage or travel data interchange.
PAUL WAIT
British businesses need to truly understand how to trade internationally, particularly beyond Europe and the US. I want to see responsibility for travel moved from finance to the commercial departments and for business travel to be regarded as an investment, not a disposable cost.
52 BBT NOVEMBER/DECEMBER 2014
Dynamic pricing does make sense in some cases – for example, for businesses whose travellers usually book well in advance
the same hotels and re-doubling efforts to hit negotiated volume commitments to preferred suppliers. Advito also warns about so-called
dynamic pricing – agreeing a percent- age off the best available rate on the day instead of a fixed corporate rate. Buyers have generally shunned this, partly because it makes budgeting difficult, but mainly because they fear it ends in a dearer rate more often than not. Advito suspects some hotels are nudging corporate clients
DEAN FORBES
Corporations embrace mobile as a platform and stop being so restrictive. The ability for travellers to truly leverage travel applications while on the move can be revolutionary – and there are thousands of road warriors out there fed up with carrying two phones.
TOM STONE
As a traveller, that the US introduces fast-track arrivals like we have in the UK
towards dynamic pricing by restricting the number of rooms available at the corporate rate.
Dynamic pricing does make sense in some cases, Advito believes, for example for businesses whose travellers usually book well in advance. But old-fashioned corporate rates usually remain the better option. Advito therefore recommends buyers step up their auditing of how often their agreed rates are actually available. “Armed with this knowledge, buyers can confront the hotel with clear evidence if they’re not getting the rates they negoti- ated,” it says. “Hotels are far less likely to block out customers that are actively monitoring their bookings.” Finally, a warning from both forecasts, which have generally assumed continua- tion of the current relatively benign global economy: it could all change. Risks pointed out include security worries (notably Ukraine and the Middle East), and that the eurozone could slide again or the Chinese bubble bursts. And that’s not even taking into account the Ebola outbreak, which erupted after both reports were published.
for premium passengers, because the Trusted Traveller programmes are not good enough. As a buyer, that NDC [New Distribution Capability] is harnessed as a force for good.
BELINDA POTE
The hotel guest experience becomes more digital. Mobile check-in and check-out will soon become the norm, and travellers will expect further technological innovation in service and personalisation.
FRANK JAHANGIR
Corporate buyers evaluate the total proposition presented by airlines as part of the contracting process, including competitiveness, operational reliability and corporate sales support.
DEAN DE BEER
Another runway at Heathrow. If London is going to continue to be seen as a major business destination, we desperately need it.
BUYINGBUSINESSTRAVEL.COM
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