Hotel rate transparency continues to present challenges for travel managers with global programmes, according to new research by accommodation platform ehotel and the BTN Group.
The survey of more than 100 travel management, procurement, HR and finance professionals, revealed 58 per cent of respondents consider rate inconsistency as the “biggest challenge” in traditional RFP sourcing. Two-thirds of the companies surveyed manage hotel programmes on a global scale.
The findings suggest a shift towards ‘hybrid’ sourcing models that combine negotiated rates with aggregator content, with 47 per cent of respondents stating employees frequently book outside the approved programme. An additional 39 per cent reported that negotiated rates are not available at the time of booking.
According to the survey, 32 per cent of companies indicated that business travel volumes are increasing at a faster rate than the programme. Additionally, 31 per cent of respondents stated travellers find better rates than those negotiated as part of the programme, while another 31 per cent noted insufficient sustainability data from preferred hotels.
“The biggest challenge is balancing cost control with traveller satisfaction,” said one survey respondent. “With rising pricing and changing travel demand, it’s tough to secure competitive rates while offering flexibility and ensure compliance. Plus, there’s growing pressure to focus on sustainability and use data effectively,” they added.
When it comes to working with hotel aggregators, insufficient rate transparency emerged as the top challenge, identified by 44 per cent of respondents. But among buyers of small to mid-sized travel programmes – or those with less than €5 million in annual accommodation spend – 58 per cent cited it as a challenge.
Forty per cent of buyers also said they were challenged by the lack of a relationship with individual suppliers. That was especially painful for those who manage annual programmes of €5 to €10 million or those who indicated their volume is growing faster than their programme can support. Integration issues with a company’s chosen OBT or TMC was also highlighted as a challenge by 39 per cent of respondents.
More than 50 per cent of respondents are also seeking improved data analytics and real-time benchmarking, while almost 80 per cent expect support for centralised billing as part of a managed hotel programme.
“The study clearly shows that cost efficiency and traveller satisfaction can only be achieved together,” said Fritz Zerweck, CEO of Berlin-based ehotel. “With fully integrated processes – from sourcing and booking through to billing – supported by transparent data, companies can build a solid foundation for compliance, sustainability and productivity.”
The BTN Group, on behalf of ehotel, surveyed more than 100 travel managers with Europe-wide responsibility this summer. Around 60 per cent of respondents also cover North America, while 50 per cent include Asia Pacific, 48 per cent also extend to the Middle East and Africa, and 38 per cent include Latin America as part of their remit.