HOTELS


Dynamic pricing puts pressure on buyers who would prefer a contracted rate


Capita’s Hawley envisages a middle ground – for the moment. “The most important element of a hotel rate is that it’s priced competitively,” he says. “Working with a mandated hotel programme allows Capita to agree com- petitive rates based on clear volume expectations, and there is access to that rate, either through allocation or Lowest Rate Available. Having an agreed rate on these terms creates a ceiling price for the corporate and allows both parties to effectively optimise budgets and forecasting. “With a model of dynamic pricing, the deal to the


corporate is a set or flexible discount from BAR, but the hotelier decides what that discount is and what BAR is at any given time. I’m unclear how that benefits the corporate. Dynamic pricing has its place alongside contracted rates for areas where there is not enough volume to establish a contracted rate.”


One glimpse of the future of hotels inventory control


is being offered by Rotana, using artificial intelligence. The UAE-based hotel group, with properties in 20 countries, has recently revamped its data management systems with new business intelligence tools. These include “enhancing booking processes through the installation of AI-driven chatbots,” according to Samir Abi Frem, Rotana’s corporate vice-president of IT. How buyers react to Hilton’s new pricing structures will no doubt be closely watched, in particular by those chains that could capitalise on any backlash from buyers. As Hawley says: “To suggest any cancellation flexibility will come at an increased cost is, in effect, penalising the corporate for the core business it is placing with the hotel. I would proactively switch business towards hotels willing to work in conjunction with the corporate – so po- tentially it’s a good opportunity for the more long-term, partnership-minded hoteliers.”


112 SEPTEMBER/OCTOBER 2018 buyingbusinesstravel.com


SITEMINDER ANALYSED THE TOP 15 BOOKING CHANNELS IN 13 MARKETS


Booking.com 1


was number one booking channel in all of the markets


Expedia’s Hotels.com was ranked second in 12 markets, losing out to HRS in Germany


Direct bookings


via the hotel’s own website was the third most popular channel in eight markets


GDS bookings


2 3 4


came fourth in the UK and US


Source: Siteminder analysis of 72 million reservations across 28,000 hotels in 2017


PHOTO: WESTIN SINGAPORE


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