Companies and corporate travel managers rethink how they source and negotiate hotel stays as managed hotel programs undergo rapid transformation. Travel buyers are looking to embrace more flexible rate strategies, modernize request-for-proposal (RFP) processes and adapt to the expectations of a next-generation workforce—all while navigating rising costs and persistent program gaps.
This is according to new research released today by the Global Business Travel Association (GBTA), the world’s largest business travel association, in partnership with Radisson Hotel Group, one of the largest and most dynamic hotel groups, operating in EMEA and APAC with over 1,565 hotels in operation and under development in +100 countries. The report – The Evolution of Managed Hotel Programs – finds corporate travel managers are seeking innovation within the accommodation procurement process, with annual procedures seen as outdated, expensive and inefficient.
The Radisson Hotel Group made this research possible. It provides valuable insights into today’s hotel program dynamics. Travel managers will need to continually adapt their strategies as a result of changing business requirements, rising costs and changing expectations from travelers to create more resilient and responsive hotel programs in the future. said Suzanne Neufang, CEO, GBTA.
In today’s rapidly changing travel landscape, partners are more under pressure than ever before to balance value with compliance and traveler satisfaction. This whitepaper was developed in partnership by GBTA to support travel managers to develop smarter and more resilient travel programs. “As personalization and dynamic pricing, as well as tech-driven expectations, reshape corporate travel, we are here to help businesses navigate this complexity and turn it in an opportunity.” said Johanna Wessman Fresnel, Senior Director & Head of Global Accounts, Radisson Hotel Group.
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Decision Influencers – Company Negotiated Rates, Traveler Preferences and Proximity
When travel buyers sit down to curate a list of preferred hotels, the decision-making process is clear—and deeply strategic. Prices remain king. According to 83%, company-negotiated discounts, fixed pricing, and company-negotiated rate structures are the most important. The importance of location is second. 82% want properties near their offices, and 44% want them to be close by client locations.
Travel managers work behind the scenes to find a balance between flexibility and financial control. The use of dynamic pricing models by 77% and chain-wide discounting (74%) is gaining ground. Travel managers are claiming that dynamic pricing has been the most popular approach to their programs. However, 60% prefer a hybrid approach, combining fixed and variable rates at the hotel level. This allows for both flexibility and savings.
Employees themselves are also getting more involved. Travel managers report that nearly 57% now occur at hotels with company-negotiated rates—evidence that employees are actively seeking value and alignment with company policies.
In the near future, 78% travel managers think that Gen Z and Gen Alpha will influence hotel preferences. These emerging business travelers are likely to prioritize ease of booking (79%) as well as tech-forward experiences in hotels (61%).
Hospitality Process Innovation: Opportunities for Innovation
Travel managers are keen to explore a range of innovative RFPs, including multi-year fixed-rate agreements (64% have expressed interest or already made an agreement), spending-based targets (60%), sharing-based goals (50%), and dynamic evergreen arrangements (52%).
The role of online booking tools is increasing. According to 42%, OBT hotel bookings increased over the past year. 74% also expect an increase within the next 3 years. In addition, a larger number of buyers have reported that direct bookings (34%) and Online Travel Agency Bookings (OTA) (28%) are declining over the last year.
Addressing Gaps in Travel Management
Travel managers have reported that their programs are not always available in certain cities. The most common gaps are those relating to availability (25%) or preferred coverage (21%) of the travel program. London, Paris Berlin Amsterdam and Dubai have the largest gaps.
There is a growing appreciation of the value benchmarks. While 44% travel managers see gaps in hotel procurement, notably around sustainability (57%), standards of spending (55%), or carbon measurement (51%), they are also identifying. While half of buyers (52%), find sustainability benchmarks helpful, many remain uncertain (29%), or unconvinced (18%).
Finding the best rates and options
Non-Global Distribution System-based channels are increasingly popular. Sixty-two percent of travel managers list lower prices and a wider range of options as their main advantages. Other advantages include accuracy in rates (36%), improved shopping experiences (31%), greater flexibility (31%).
While almost all travel managers (93%) claim that their Travel Management Company has its own preferred rate, only 39% conduct TMC audits or OBT audits more than once a year with strong oversight.
Forecast for Business Travel Spending in 2025
Three-quarters (77%) of corporate travel managers who were surveyed believe that their business travel expenditures will increase or remain the same between 2024 and 2025. Sixty-seven percent of those surveyed cite increased travel prices (55%) or increased employee travel (54%) as the main reasons for spending more.
