New research from the Global Business Travel Association shows hoteliers are in the driver's seat in corporate negotiations, especially compared to the pre-pandemic environment.
In a survey of corporate travel managers in the U.S., Canada and Europe, 55% said they're having a hard time finding favorable hotel rates through the request-for-proposals process, compared to 39% who said they are struggling with airline pricing.
European hotels are proving particularly pricey from a corporate buyer's perspective, with 75% of Europe-based buyers saying it's "somewhat difficult" to "very difficult" to find favorable rate. Nearly half of North American respondents — 47% — said the same.
While the survey was based on buyers' experiences from 2022, a majority of travel managers expect the current environment to persist for at least the next two years.
The GBTA pointed to a number of factors including inflation, a wave of "buyer-friendly" deals ending, more sophisticated or hardline negotiating tactics for hotels, and overall less reliance on business travel for hotels as leisure demand spikes.
"This recovery has been driven largely by vacationers," the GBTA contends. "As a result, airlines and other travel suppliers are less dependent on corporate clients than they were before the pandemic. This reduces their incentive to offer favorable discounts and contract terms."