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As demand grows, hotels push for dynamic pricing with corporate clients in 2015 | Hotel Marketing

ph.logo.sublogos.news.white-ARTICLEAccording to an updated forecast by Advito for 2015, hotels increasingly encourage corporate clients to switch from fixed negotiated corporate rates to dynamic pricing. And some go even further by undercutting negotiated rates and offering business travelers the lower pre-paid rates normally associated with leisure stays.

With the exception of Europe, demand is likely to grow again as the global economy strengthens, but although this should give hotels more pricing power, suppliers are not taking demand growth for granted.

Hotels know corporate clients are still nervous about authorizing too many trips and are looking to substitute travel with technology wherever it makes sense. On balance, therefore, rates are likely to grow in 2015. While some hotels will push for more, increases will be modest outside of the world’s busiest business cities (such as New York and London) where rate rises will continue to be much stronger.

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As demand grows, hotels push for dynamic pricing with corporate clients in 2015.

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