Travel managers 'keen to see innovation in hotel sourcing'

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Travel Management Companies (TMCs) are seeing an increased impetus to revamp and modernise their approach to hotel sourcing, according to a new report.

Research from the Association of Corporate Travel Executives, underwritten by BCD
Travel, has indicated that corporate travel managers are becoming increasingly frustrated with traditional approaches to sourcing hotels, and are turning to newer, dynamic systems to address productivity bottlenecks.

The report indicated that 56 per cent of travel managers are currently planning to source more than 50 per cent of their room nights via a request for proposal (RFP), with 29 per cent using RFPs to source at least three-quarters of their rooms. However, only 38 per cent believe this approach gives them the best return on investment, showing there is an appetite for new methods.

As such, 42 per cent of managers are now using some degree of dynamic hotel sourcing, with 20 per cent saying they are using a dynamic model to source at least half of their room nights. Moreover, 70 per cent of those using a dynamic approach said they were able to secure more than half their rooms at their negotiated rate in the last sourcing cycle.

When asked about the advantages of these newer approaches, 44 per cent said they offered greater, with 42 per cent citing improved traveller satisfaction and 33 per cent pointing to enhanced compliance.

Charuta Fadnis, senior director of research and intelligence at BCD Travel, said: "While corporate travel industry professionals often think of air travel as being the key function of the
travel executive's job, hotel sourcing is an enormous timesink.

"Taking advantage of dynamic sourcing methods can vastly reduce the time and energy spent on negotiating hotel contracts, lead to ongoing programme improvements and enhance the traveller experience."

Contact ProCon Solution now to find out how ProTAS can help to make your TMC's processes more efficient by automating your mid and back-office systems.

 
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