The upcoming 2025 RFP season is set to bring a new dynamic to the hotel industry as corporate hotel programme negotiations begin in August. With leisure demand cooling and international travel on the rise, hotels are shifting their focus towards corporate clientele. However, navigating the complex relationship between corporate needs and hotel ambitions will be crucial for success.
A Tighter Grip on Rates
Corporates are increasingly cautious about rising costs due to inflation, leading to a demand for more controlled and predictable hotel rates. This means hotels may need to reconsider aggressive rate increases and align with corporate-set city rate caps to remain competitive. Additionally, the influx of new properties in certain markets will intensify competition, putting further pressure on achievable rates.
While dynamic pricing offers flexibility for hotels, corporates are wary of the associated uncertainty. Hotels may find more success in adopting this strategy for lower demand periods, but securing last room availability (LRA) at agreed rates will likely be a key selling point for many corporate clients.
Shorter Negotiation Cycles and Clear Expectations
Corporates are aiming to streamline the RFP process by minimising lengthy negotiations. Presenting the best rate upfront will be essential for hotels to avoid protracted discussions. Furthermore, aligning on cancellation policies is another critical area where clear communication is paramount.
A Buyer’s Market
Overall, the 2025 RFP season appears to favour corporate buyers. Hotels will need to be proactive in understanding their clients’ needs and offering competitive packages that balance their financial goals with corporate requirements. Open and transparent communication will be key to building strong partnerships and securing long-term business.
Are you a hotelier preparing for increased corporate demand or a corporate travel manager looking to optimise costs?
Let’s connect and discuss strategies for success. Email our managing director Phillip Allsopp at [email protected] today to schedule a free consultation.
