Given the strength of the hotel business in many markets, corporate travel managers who negotiate hotel rates on behalf of their companies’ business travelers shouldn’t have been surprised to find many hotels looking for double-digit increases on negotiated rates for 2007. Full-service online travel agency Travelocity Business shed light on travel managers’ predicament in a briefing today in New York.

“Clients certainly are feeling the pain of increasing ADR, lack of availability, and just significant cost pressures,” said president Ellen Keszler. “At the same time, as a general rule corporations don’t have great compliance with their hotel programs, certainly compared with the compliance they have been able to achieve with their airline programs.”

For hotel owners facing a variety of online distribution options, it’s helpful to understand the pressures corporate travel managers are under, especially if a significant amount of owners’ revenue comes from business travel. Similarly, owners of hotels that do a high percentage of business travel bookings have begun using online distribution to drive. additional bookings to their properties on slow nights such as weekends

According to statistics used by Southlake, TX-based Travelocity Business, companies that may have 70% compliance on the airline side tend to achieve hotel compliance more in the area of 35%-40%. Not being able to drive bookings to their preferred providers further hinders hotels’ willingness to offer more attractive rates.

Get the full story at Hotel Business