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High inflation – currently above 6.29% — and market nuances complicate hotel sourcing here. Chains represent only 20% of the hotel database, primarily in major cities — so access to non-GDS content, primarily independent hotels, is key. Outside major markets, relationships are vital as hoteliers are “more comfortable signing agreements” with representatives they know.
HRS’ negotiated rates were down 3% in Sao Paulo, and 9% in Rio.
HRS solicited rates from 30,000+ hotels in China for the 2017 RFP season. Booking tools and open booking / duty of care are emerging as local travel manager concerns. In smaller manufacturing centers, chains represent just 20% of inventory, but are usually in highest demand. Chinese business travelers often place a higher value on the prestige of a property, with travel managers taking that into account when sourcing. Relationships are vital.
Local relationships and market expertise delivered savings in two key cities. In Shanghai, MPD rates show a 2017 increase of 5.35%. HRS’ negotiated rates for 2017 were essentially flat at -0.75%. Beijing’s MPD rates were up 6.11%, while HRS’s negotiated rates increased a meager 0.7%.
The hotel market in India is more mature than prior years and was essentially flat for 2017. Again, on-the-ground relationships in this market tend to unlock more savings. HRS sees more requests for corporate housing in India, as well as unique ele-ments like requests for drivers.
HRS sourced more than 12 million room nights worldwide during the 2017 RFP season, working via their 400+ person hotel-facing team to secure competitive rates from both chains and independent hotels. The statistics below represent cumulative figures for these specific cities and their nearby locations. MPD rates refer to average rates seen from all sources; HRS average rates are those negotiated on behalf of its global and regional corporate clients.
Meet with internal stakeholders at these destinations, and leverage their on-the-ground knowledge, travel projections and data to determine if you’ve got enough volume to negotiate.
Invest in hotel relationships locally, via corporate colleagues and respected outsourced entities like HRS, as it can be a key driver in obtaining discounts.
Meet with internal stakeholders at these destinations, and leverage their on-the-ground knowledge, travel projections and data to determine if you’ve got enough volume to negotiate.
Invest in hotel relationships locally, via corporate colleagues and respected outsourced entities like HRS, as it can be a key driver in obtaining discounts.