Accommodation: Four experts delve into the latest trends and share their top tips on how to respond

Four experts share their advice on how to respond to trends in the accommodation sector

NINA MARCELLO American Express GBT Principal, Global Hotel Practice Line Lead

Hotels have been under immense pressure, operating at vastly reduced capacity with the lowest occupancy rates on record. They have had to meet additional costs around cleaning protocols, particularly when rooms must be left vacant between guests. Revenue per available room has dropped, so hotels have had to find other ways to maintain revenues, such as offering companies meeting space as an extension of their office space.

Travel buyers might see this as the ideal moment to overhaul their sourcing strategy, but this only makes sense if they have sufficient volume in their programme.

Many hotels just don’t have the staff to work on RFPS and many won’t take corporations seriously if they plan to book only 40 nights per month.

To make sure they can get the rooms they need, at the right rates, buyers need to take a longer-term view. Sourcing in today’s fluid environment is a continuous process: don’t just roll over your rates or fix and forget.

Keep an eye open as volumes return, maintain relationships and talk regularly with top partners so they understand what kind of support you need when travel starts moving again. And, as part of their focus on rates management, buyers need to make sure they get any available percentage discounts off the best available rate when this is lower than their negotiated rates and take advantage of resources like travel management company (TMC) rates and re-shopping tools.

PETER GROVER TRIPBAM Managing Director for Europe

It’s no great shock that Covid19 has had a major impact on the corporate hotel market. Booking volumes are down 86% year over year globally, with European volumes down 95%. This greater decline in Europe can be attributed to firmer national lockdowns compared to the U.S. and weaker domestic travel.

At TRIPBAM we’ve seen a number of trends emerge, not only in rate but also in stay patterns and demand by segment and brand. While European volumes may be down compared to the rest of the world, we’re not seeing the same rate volatility here, with more hotels retaining pricing power compared to their North American or Asia Pacific counterparts.

Travellers who are booking overnight stays are doing so outside of city centres and at lower-scale hotels.

Stays at five-star properties are down 91%, while stays at two-star properties are down only 56%. This is being driven largely by the types of workers who are still travelling. This change in the travelling population is also shifting market share among the chains, with independent properties gaining the greatest share of corporate travel bookings ahead of Marriott, Hilton and Accor.

How can you as a buyer respond to these changes? First of all, look at your current travel volumes. If you still have people on the road, you’ll want to make sure you negotiate or renegotiate discounts at properties they’re currently using. Retail rate bookings are up 55%, which indicates corporate negotiated rates are either out-ofstep with the market or they don’t exist at the properties being booked.

Responsible travel, risk management and employee wellbeing are high priorities for most travel buyers and the pandemic has accelerated this”

Next, consider what your travelling population will look like toward the back half of the year and adjust your programme accordingly. We expect to see some rebound in the higher-scale hotel segments and in brands because of greater trust in their well-marketed hygiene initiatives.

Looking ahead, there is reason to be optimistic. The UK roadmap out of lockdown and the successful vaccination efforts underway nationally and in the U.S. has more corporates anticipating the return of business travel in 2021. We expect by the fourth quarter we’ll see corporate hotel volumes return to 40% of 2019 levels.

LEIGH COWLISHAW Global Supplier Partnership Director, Advantage

Business cultures and values, such as wellbeing, sustainability, diversity and inclusion, are now being weaved into travel policies. This means the selection of accommodation providers into travel programmes is now being measured not only by the discounts they offer but by the facilities provided within their room rate and how guests will feel staying at the property.

There is an increasing demand for serviced apartments. In the pandemic we have become used to our home comforts – the ability to relax after a busy day, enjoy

Travel buyers might see this as the ideal moment to overhaul their sourcing strategy, but this only makes sense if they have sufficent volume”

home-cooked food, and be in control of what we are eating – and apartments give us this extra degree of flexibility.

I also believe travel and expenses will increasingly be married together to look at the true cost of the stay, rather than the room rate discounts alone and T&E on a separate line item.

Coming out of this pandemic, there could be a degree of anxiety among travellers who will be looking for more private space and ways to avoid unnecessary contact. Loyalty schemes won’t be just about getting upgrades but will allow travellers to preallocate their room, do advanced check-in, and pre-order room service – all reducing contact with others during their trip.

Above all, as we come out of the pandemic crisis travellers will want reassurance that while their employers needs to balance costs they also value their employees and have their best interests at heart.

DEBBIE MALE Head of Sales, Europe, IHG Hotels & Resorts

Responsible travel, risk management and employee wellbeing are high priorities for most travel buyers and the pandemic has accelerated this due to changing regulations, traveller confidence and a higher focus on duty of care.

The focus on acting responsibly is not only driven by senior management but also by travellers themselves. In our recent global survey of 9,000 travellers, 53% agree that Covid-19 has made them more socially and environmentally conscious about their impact when travelling, with younger travellers leading the charge.

The same survey also showed that 80% think it is important to choose a hotel brand that operates responsibly. Booking decisions are being made based on a brand or hotel’s sustainability credentials, which is reflected in growing attention from OTAS, as well as corporate clients who are demanding more data in this area as part of RFPS.

The recent launch of IHG Hotels & Resorts’ Journey to Tomorrow is our responsible business plan to drive change for our people, communities and planet over the next decade. Progress is best achieved when we work together, and we will continue to collaborate closely with those who stay, work and partner with us to drive positive change.