How people choose to travel for work is changing in the millennial economy. It’s evident in the increasing demand for corporate rentals or Airbnb stays, taxis taking a back seat to ride sharing companies and traditional room service being replaced by the likes of Uber Eats.
Complete Business Travel has noticed a shift from fixed hotel programs and are finding some customers are choosing and benefiting financially from combining a hotel program with dynamic rates.
“In past years, static hotel programs were most common. Often we would negotiate a national deal, if a hotel chain had good representation across regions regularly visited by our clients,” says Miriam Fois, CBT General Manager.
“Now that technology has evolved to include online travel services, such as Expedia and Booking.com, our clients are reducing average nightly hotel rates by selecting dynamic best daily rates through these channels.”
“Airbnb is also being booked more widely because of the improved quality and advantageous rates for weekly or monthly stays. We are working with clients to incorporate these shared economy providers in their travel policies. It is a new way of doing business, one that has merit in the corporate space,” explains Miriam.
This more flexible, dynamic approach gives greater freedom of choice to travellers when selecting hotels. Governance is still required to ensure policy compliance, but this can be achieved via various methods. CBT customer feedback from frequent travellers has been overwhelmingly positive and many stated that the ability to choose has improved their perception of having to travel for business.
For larger companies, a well-defined hotel program is a cost-effective approach. By consolidating room nights you can benefit from loyalty programs and it gives buying power for future negotiations.
For small-to-medium clients, securing point of sale discounts via dynamic rates often presents better value and savings.
To find out more about accommodation options that best suit your company, please contact CBT and we will be pleased to discuss your personal business needs.