HOTELMARKETING.COM

Travel buyers increase hotel competition and negotiating leverage

February 03, 2010 | Hospitality Industry

Travel buyers are reporting success in lowering hotel rates globally and upping inclusive amenities for 2010, even in cases where they already had gone back to the table midyear for additional negotiations.

In looking at rates for a group of Carlson Wagonlit Travel’s buyer clients, 2010 hotel rates globally are about 6.6 percent lower than 2009 rates, and North American hotel rates are down by more than 8 percent, said Monica Eiden, the agency’s project manager for global hotel solutions. Although many buyers face lower volumes this year, they gained savings by consolidating programs, which increased competition among hoteliers.

“Hotels knew if they didn’t put their best foot forward and reduce rates like their competitors did, they would be removed from the program,” Eiden said. “It was clear that hotels wanted business, putting in value-adds like parking or access to the concierge level.”

Patricia Carlin, purchasing manager for global card and travel for Dublin, Calif.-based Sybase, said she was able to lower rates in many of her markets, particularly in North America. In many cases, she was able to secure rates through 2011 and gain such new amenities as meals in some locations, she said.

“We had gone back three times and negotiated during 2009, but this went smoothly,” Carlin said. “People I’m working with aren’t as panicked as we were in 2009, so we’re trying to develop partnerships.”

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