As travel costs rise and workforce expectations shift, corporate travel managers are modernizing hotel sourcing and rate strategies to build smarter, more resilient programs
Jun 25, 2025
Corporate hotel programs are undergoing a major overhaul as travel managers respond to rising costs, outdated procurement processes, and evolving employee expectations. With dynamic pricing on the rise and next-gen employees driving preferences, managed hotel programs are being reshaped to meet modern business needs while closing persistent program gaps.
Key takeaways
- Dynamic pricing gains traction: 77% of travel managers now use dynamic pricing, and 60% prefer hybrid models that blend fixed and dynamic rates for flexibility and savings.
- Next-gen traveler influence: 78% believe Gen Z and Gen Alpha will shape future hotel preferences, prioritizing ease of booking and tech-forward experiences.
- RFP innovation is underway: Multi-year fixed rate agreements, spend-based targets, and evergreen dynamic pricing models are gaining popularity as alternatives to traditional annual RFPs.
- Location still matters: 82% prioritize hotel proximity to company offices; 44% to client sites—showing location remains nearly as important as price.
- Sustainability gaps persist: Over half of managers (57%) cite sustainability as a key program gap, with many still unsure about the value of benchmarks.
- Shift in booking channels: Direct and OTA bookings are declining while OBT (online booking tools via GDS APIs) usage is growing, with 74% expecting increases in the next three years.
- Non-GDS channels offer value: 62% of managers see better rates and options outside GDS platforms, though only 39% conduct regular audits on their TMCs or OBTs.
- Travel spend outlook for 2025: 77% of managers expect equal or increased spending next year, driven by rising prices, company growth, and more employee travel.
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