Corporate travel managers are shifting their focus from cost savings to broader strategic goals, including sustainability and traveler satisfaction, through structured RFP processes.

As the business travel landscape undergoes significant changes, corporate travel managers are adapting their strategies for sourcing hotels and meeting venues. The traditional focus on cost reduction is expanding to include broader objectives such as sustainability, traveler satisfaction, and risk management. This evolution in sourcing practices is highlighted in a recent survey conducted by the Global Business Travel Association (GBTA) in collaboration with Cvent, a provider of meetings, events, and hospitality technology. The survey, which included corporate travel managers and hotel professionals from the U.S., Canada, and Europe, reveals a shift towards more strategic, value-driven approaches in the request for proposal (RFP) processes.

RFPs: A Strategic Tool

The survey indicates that structured RFPs remain the preferred method for sourcing in managed hotel and meetings programs. Approximately 63% of travel managers engage in formal RFPs, with nearly half exclusively using this method. Smaller businesses, however, tend to negotiate outside formal RFP processes, with 69% of firms with 5,000 or fewer employees opting for informal negotiations. In contrast, larger companies and European firms are more likely to use structured RFPs, with 55% of European buyers exclusively negotiating through this method.

The drawbacks of informal negotiations include less standardization, potential misunderstandings of contract terms, and limited property comparisons. These challenges highlight the benefits of structured RFPs in providing stability and consistency in corporate travel programs.

Beyond Cost Savings

The role of RFPs is evolving beyond securing better rates. Suzanne Neufang, CEO of GBTA, emphasizes that strategic sourcing through RFPs is crucial for building resilient travel programs that align with broader company goals, such as employee satisfaction and carbon emission reduction. Julie Haddix, Senior Director of Marketing at Cvent, adds that formal RFPs help drive consistency, visibility, and cost savings across hotel and meeting expenditures.

Fixed vs. Dynamic Rates

Despite growing interest in dynamic rates, which offer percentage-based discounts, fixed rates remain a cornerstone of managed hotel programs. The survey found that 79% of buyers frequently negotiate fixed rates, while 47% do so for dynamic discounts at individual properties. Hotels often include amenities like free breakfast and waived cancellation fees with fixed rates, enhancing the value of these partnerships. Additionally, 84% of travel programs benchmark their negotiated discounts against public rates to ensure competitiveness.

Managed Meetings Programs

The research also highlights the need for improvement in managed meeting programs. Only 32% of buyers report having a well-developed program, while 34% of companies lack a defined sourcing process for securing meeting spaces. The absence of a structured approach can lead to higher costs, less data for future negotiations, and increased risk management concerns. However, companies with a defined sourcing process report average savings of 22% through better negotiation and communication.

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