Alexandria, VA – As managed hotel programs undergo a period of rapid transformation, companies and their corporate travel managers are rethinking how they source, negotiate and manage hotel stays. 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travel managers are seeking innovation within the accommodation procurement process, with annual procedures seen as outdated, expensive and inefficient.
This research conducted by GBTA and made possible by the Radisson Hotel Group provides essential insights into the dynamics facing hotel programs today. Travel managers must continue to adapt their strategies in response to shifting business needs, rising costs and changing traveler expectations to be able to build more resilient and responsive programs for the future. Suzanne Neufang, CEO, GBTA
In today’s fast-changing travel landscape, our partners are under more pressure than ever to balance value, compliance, and traveler satisfaction. This whitepaper, developed in partnership with GBTA, reflects our deep commitment to supporting travel managers with the insights, benchmarks, and strategies they need to build smarter, more resilient travel programs. As personalization, dynamic pricing, and tech-driven expectations reshape the corporate travel experience, we’re here to help businesses navigate the complexity and turn it into opportunity. Johanna Wessman Fresnel, Senior Director & Head of Global Accounts, Radisson Hotel Group
Decision Influencers: Company-Negotiated Rates, Proximity and Traveler Preferences
When travel buyers sit down to curate a list of preferred hotels, the decision-making process is clear—and deeply strategic. Price remains king, with 83% prioritizing company-negotiated rates, discounts, and fixed pricing structures. But the importance of location runs a close second: 82% look for properties near their own offices, while 44% want to be close to client locations.
Behind the scenes, travel managers are working to balance flexibility with financial control. Dynamic pricing models (used by 77%) and chain-wide discounts (74%) are gaining ground. In fact, half of travel managers say dynamic pricing is the fastest-growing approach in their programs. Still, a clear preference has emerged: 60% say the ideal setup is a hybrid model, blending fixed and dynamic rates at the property level to ensure both savings and adaptability.
Meanwhile, employees themselves are becoming more engaged in the process. 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.
Looking ahead, 78% of travel managers believe younger generations (Gen Z and Gen Alpha) will influence hotel booking preferences. Ease of booking (79%) and tech-forward hotel experiences (61%) are expected to be top priorities for these emerging business travelers.
Opportunities for Innovation in the Hospitality Process
Many travel managers are interested in a host of RFP innovations, particularly multi-year fixed rate agreements (64% are interested or have an arrangement), spend-based targets (60%), share-based targets (50%), and evergreen dynamic arrangements (52%).
There is also a growing role for online booking tools (OBTs) with 42% saying OBT hotel bookings have increased in the past year, and 74% expect an increase in the next three years. Additionally, over the past year, larger numbers of buyers say direct (34%) and Online Travel Agency (OTA) (28%) bookings are decreasing.
Addressing the Gaps for Travel Managers
Travel managers report their programs face gaps in certain cities, with availability gaps (25%) and preferred coverage gaps (21%) being most frequent. Cities with the greatest gaps include London, Paris, Berlin, Amsterdam and Dubai.
While 44% of travel managers identify gaps in the hotel procurement landscape, particularly around sustainability (57%), spending standards (55%), and carbon measurement (51%), there is growing recognition of the value of benchmarks. Half of buyers (52%) find sustainability benchmarks useful, though a significant portion remain uncertain (29%) or unconvinced (18%).
Sourcing the Best Rates and Options
Non-Global Distribution System (GDS) channels are gaining favor, with 62% of travel managers citing lower prices and greater options as key benefits. Other advantages include rate accuracy (36%), better shopping experiences (31%), and greater flexibility (31%).
While virtually all travel managers (93%) say their Travel Management Company (TMC) has its own preferred rates, only 39% of travel programs conduct TMC or OBT audits multiple times a year and have strong oversight in place.
Outlook for 2025 Business Travel Spending
Three in four (77%) corporate travel managers surveyed expect their business travel spending will be higher or the same in 2025 compared to 2024. Of those, 67% cite higher travel prices, company expansion (55%) and increased employee travel (54%) as the top reasons for increased spending.
Methodology
A total of 234 responses were received between April 29 – May 5, 2025, from travel managers across the U.S. and Europe (Austria, Denmark, Finland, France, Germany, Ireland, Italy, Lithuania, Luxembourg, Netherlands, Norway, Poland, Portugal, Slovakia, Spain, Sweden, Switzerland and the United Kingdom).
Read more and download the full report here or visit the GBTA Member Hub.
About GBTA
The Global Business Travel Association (GBTA) is the world’s premiere business travel and meetings trade organization headquartered in the Washington, D.C. area and serving stakeholders across six continents. GBTA and its 8,000+ members represent and advocate for the $1.48 trillion global travel business and meetings industry. GBTA and the GBTA Foundation deliver world-class education, events, research, advocacy and media to a growing global network of more than 28,000 travel professionals and 125,000 active contacts. For more information visit gbta.org.
About the GBTA Foundation
The mission of the GBTA Foundation, the US 501c3 charitable arm of the Global Business Travel Association, is to help the global business travel industry create a positive impact and better future for people and the planet. The GBTA Foundation focuses on the strategy and execution of GBTA’s global sustainability programs, supporting initiatives related to climate action; diversity, equity and inclusion; and other talent-related topics via education, research and advocacy. For more information visit gbtafoundation.org.
Debbie Iannaci
GBTA Global Communications, PR & Research
+1 305 301 7057
GBTA
