are demanding more flexible policies and asking for tools that are more user-friendly, featuring the right level of content to meet their needs.” Buyers, however, appear gener- ally happy with the chains despite their multi-brand strategies. “My preference is to work with chains if possible and practical – subject to whether they are suitable for our office locations – due to the additional leverage that this brings, in terms of both negotiated rates and other terms and conditions,” says Jef Robinson, global category manager for software firm Citrix. “Branded hotels are often better for a big company, due to the leverage that can be achieved from volumes in different hotels under the same brand,” he adds.
FAIR COMPETITION? Meanwhile, the focus in the hotel world now turns to what Marriott has in store for Starwood following the takeover. Marriott is not talking publicly about its plans as the takeover has yet (as BBT went to press) to be given the approval of competition authorities on both sides of the Atlantic. The European Commission’s competition authority, for example, was due to decide by the end of June whether to allow the merger to go ahead without a more in- depth investigation. Marriott’s Sorenson has made no
secret of his belief that Starwood’s SPG rewards programme is one of the main ‘prizes’ from the deal, although he may still combine it with Marriott Rewards to create the biggest global hotel loyalty scheme with more than 100 million members.
“Like the leisure traveller who expects to control every aspect of the trip, bookers are now expecting similar levels of choice”
But major changes are not expected to take place until either late next year or early 2018. However, those brand-weary travellers hoping for a cull of some of the combined 30 brands now under one owner may be disappointed. Sorensen seems willing to realign, rather than let go, any of the brands that occupy similar market segments, such as AC by Marriott and Starwood’s Aloft, as well as Ritz-Carlton and St Regis. And there is some suggestion that Starwood’s environmentally-friendly Element extended-stay brand could by repositioned and used to challenge the growth of Airbnb. If any brand is axed it could be Star-
wood’s ‘soft’ brand of independent hotels, The Luxury Collection, as Marriott’s similar brand – Autograph – has outperformed it recently and it would make some sense perhaps to amalgamate them. But don’t bet on it: hoteliers are clearly deeply wedded to their brands and it would take a brave CEO to let any of them go.˜
Top tips for buyers
— Welcome multiple brands More brands mean more locations, choice and price points within the same company, enabling group-wide deals to be negotiated.
— Compliance is key A tightly controlled programme, capturing data and benchmarking against city averages will help achieve revenue savings and put buyers in a better position to fine-tune policies.
— Cheap is not always cheerful The lowest rate may not be the most cost-effective as negotiated rates often include airport/local transportation, breakfast, wifi, parking and so on.
— Rate audits Check that agreed negotiated rates can be fully accessed through global distribution systems and other channels.
— Frequent travellers Negotiate loyalty cards for top travellers that are preloaded at an above-entry level for the scheme as this can help drive compliance.
— Define deals Mutually agree the definition of such clauses as late-room availability, especially how much of a hotel’s overall room inventory will be included.
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BBT JULY/AUGUST 2016
BUYINGBUSINESSTRAVEL.COM
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