London - Wyndham
Hotel Group thus far has received 23 percent more requests for proposals for
2013 rates than it did for 2012, according to executive vice president for
global sales and revenue management Ross Hosking, speaking here last week at
the Guild of Travel Management Companies autumn conference. Speaking later to BTN,
Hosking said the steep rise partly can be attributed to buyers trading down to
lower-tier properties in response to proposed heavy corporate rate increases. Wyndham
owns several midscale brands, including Ramada.
analyses from the past few months, Hosking said hotel groups are pushing for 2013
corporate rate hikes of 7 percent to 9 percent, whereas buyers are looking to
hold rates steady but might accept increases up to 5 percent. Hosking labeled ongoing
negotiations "the most contentious for years," prompting buyers to closely
re-examine hotel programs. "Hotels are pushing for really big rate growth,
so customers are looking for ways to meet their goals for travel spend,"
Hosking said. "In certain markets they have decided to take out upscale properties
and are looking more at midscale properties."
claimed that growth in the number of RFPs sent to Wyndham is translating to more
business, and that "business travel revenue is up significantly." Asked
how 2013 rate negotiations will play out, he said, "Hotel companies will
draw a line in the sand where demand is greatest and then concentrate on giving
customers better discounts in secondary and tertiary cities."