As corporate travel continues to increase, travel managers are looking for more and more from hotels in their negotiated rates and contracts.
They want flexibility for last-minute room cancellations, additional extras thrown in, rate caps, the ability to conduct hybrid meetings and proof of meaningful ESG considerations from hotels that go beyond lip service.
As request-for-proposals season gets into full swing, consider all of these factors when working with corporate clients.
"Dynamic rates are a pricing method to quote business travel, where the hotel room rates are adjusted based on real-time demand with a discount off of best available rate between 10% to 25%. If a national account accepts a static rate, they expect an increase, but of no more than 3%, and they are also looking for rate caps throughout the year, along with their dynamic rate," said Andrea Grigg, global head of hotel asset management at CBRE.
This is particularly important, since corporate clients and travel managers are projecting slight to moderate growth in their business travel in 2025 compared to 2024, she noted.
Business groups are now more discerning when it comes to sustainability. There are often sections in RFPs requesting information on how the hotel supports green and environmental matters and can demonstrate positive work to address environmental issues and social impact, Grigg said. In some cases, this is required to qualify for submission.
"With the rebound in travel and meetings that we’re seeing today, compounded with new business travel patterns solidifying, travel managers are looking for more flexibility in their travel programs," said Christiane Cabot Bini, vice president, global business travel sales, Hilton.
As a result, Hilton is seeing continued interest in dynamic pricing — both in the form of preferred negotiated corporate rates for their top hotels and travel destinations, she said.
ESG initiatives remain a desired feature for corporate guests at Hilton hotels.
"Now, more than ever before, we’re seeing that both our guests and our corporate clients are looking for brands that are embracing purpose, reducing their environmental impact and doing good in their local communities," Cabot Bini said.
She added 74% of global travelers agree that it’s important to minimize their environmental footprint while on the road, according to Hilton's 2024 Trends Report.
Wendy Ferrill, vice president of worldwide sales at BWH Hotels, said the priorities are ESG and "the importance of value for price paid."
"This matters significantly to corporate travel managers," Ferrill said. "From a traveler perspective, we are seeing that newer business travelers starting out or midway in their careers place high importance on ESG factors when making buying decisions; however, that may not necessarily be the case for corporate travelers consistently."
Flexibility is of top importance as corporate travel managers plan their budgets, said Sarah Lynch, general manager at the Fairfield Inn San Diego/San Marcos.
"They want hotels to offer competitive negotiated rates, but with added emphasis on flexible cancellation policies. Cost control remains a priority, but there’s also a demand for customization and personalization in contracts to better align with the unique needs of their employees," Lynch said.
There also is more of a demand for hybrid meeting spaces, where in-person attendees can seamlessly connect with remote participants. This has led to more investment in advanced tech infrastructure.
Ditto for flexibility, said Ricardo Argiles Vives, dual-property general manager at the nearby Homewood Suites and Hilton Garden Inn San Diego/Del Mar.
"With a more unpredictable economic environment, companies are looking to negotiate more favorable rates and expect hotels to offer more flexibility in terms of booking, cancellation policies, and additional perks such as complimentary breakfasts or free Wi-Fi," he said. "Additionally, there is a strong desire for transparency around pricing and the ability to customize travel packages to suit specific corporate needs."
The concept of ESG is also a more important part of the decision-making process for travel managers, and they want to work with hotels that have practices such energy efficiency, waste management, and carbon footprint reduction.
"Hotels that can demonstrate strong ESG credentials are more likely to be selected by companies as preferred partners," he added.
The focus on ESG continues to intensify, as travel managers search for properties that achieve certain standards and sustainability is a major initiative they seek out, said Dimitrios Bessis, area resort general manager at NDM Hospitality. Properties that display efforts in energy efficiency, waste reduction practices and carbon-neutral initiatives are being viewed more favorably.
"Reducing a property's environmental impact, along with participating in causes and initiatives for the environment, is key, as it shows not only to our travel planners, but to the world, the modernization of the hotel industry along with the capability to adapt in an ever-changing world," Bessis said.
It’s important to take each RFP and evaluate the client’s needs individually. Some corporate clients request lenient cancellation and rebooking terms, some may require late check-out and others may request last room availability rates to guarantee a locked-in price, said David Krauthamer, group vice president, global sales, Wyndham Hotels & Resorts. Value is another thing that’s more important than ever as corporate travel continues to rise.
Wyndham also is seeing ESG play a critical role in transient, group bookings and RFPs from large corporations, and the asks are increasingly more specific and in-depth, he noted.
"They are asking for everything from green certifications to transparency in reporting and governance practices, because they want to ensure that the locations they book align with their broader commitments to sustainability," Krauthamer said.