Business Travel News
Business Travel News
  • SECTIONSOpen Menu
    • Distribution
    • Global
    • Lodging
    • Payment & Expense
    • Meetings
    • Sustainability
    • Technology
    • Transportation
    • Travel Management
    • VIEW ALL
  • VOICESOpen Menu
    • Expert Q&A
    • 5Qs
    • OpEds
    • Sponsored Content
    • Podcasts
    • What to Watch 2025
  • RESEARCHOpen Menu
    • Participate in BTN Surveys
    • Corporate Travel 100
    • Corporate Travel Index
    • Salary Survey
    • Small & Midsize Enterprise
    • Strategic Meetings Report
    • VIEW ALL
  • WEBINARS & FORUMSOpen Menu
    • All BTN News Desks
    • BTN Communities
    • VIEW ALL WEBINARS
  • EVENTSOpen Menu
    • Webinars
    • Business Travel Show
    • Business Travel Trends Forecasts
    • Business Travel Tech Talk
    • Business Travel ESG Summit
    • Entertainment, Sports & Media Travel Summit
    • Strategic Meetings Summit
    • Government Travel Summit
    • Global Travel Risk Summit
    • Business Travel Lodging Summit
    • Business Travel Hall of Fame
    • Business Travel Awards Europe
    • Travel Manager of the Year
    • VIEW ALL EVENTS
  • RESOURCESOpen Menu
    • BTN Academy
    • BTN Communities
    • BTN Primers
    • BTN Weekend Archives
    • Business Travel Buyer's Handbook
    • Business Travel Buyer's Techbook
    • Corporate Travel Index
    • Data Sources: The Reference Guide
    • Industry Terms Glossary
    • Hotel Search
    • Influencers
    • Traveler Experience Index
    • Webinars
    • White Papers & Case Studies
Business Travel News
  • Business Travel News on X
  • Business Travel News on LinkedIn
  • Business Travel News on Facebook
  • SECTIONS
    • Distribution
    • Global
    • Lodging
    • Payment & Expense
    • Meetings
    • Sustainability
    • Technology
    • Transportation
    • Travel Management
    • VIEW ALL
    Managed Travel GuidesNEW! BTN ElevateNEW! BTN IntelligenceNEW! BTN Next
    Subscribe to NewslettersBTN DailyBTN EuropeBTN Elevate for SMEsBTN SustainabilityBTN Next for Tech & DistributionBTN IntelligenceBTN Weekend
  • VOICES
    • Expert Q&A
    • 5Qs
    • OpEds
    • Sponsored Content
    • Podcasts
    • What to Watch 2025
    Accor Looks to Bridge Sales-Revenue Divide to Align Corp. PricingAccor Looks to Bridge Sales-Revenue Divide to Align Corp. Pricing
    'Presence Premium' Amps Event Value'Presence Premium' Amps Event Value
    Weathering Uncertainty, Higher Costs Is Yet Another Lesson in Managing Business Travel in 2026Op-ed: Weathering Uncertainty, Higher Costs Is Another Lesson in 2026
  • RESEARCH
    • Participate in BTN Surveys
    • Corporate Travel 100
    • Corporate Travel Index
    • Salary Survey
    • Small & Midsize Enterprise
    • Strategic Meetings Report
    • VIEW ALL
    Annual Supplier Ratings• Car Rental Survey & Report• Hotel Survey & Report• Airline Survey & Report
    Special Reports• Meetings Tech Goes AI• Travel Payment Innovation 2026• BTN Intelligence's 2026 SME Report• BTN Intelligence's 2026 AI Report• Travel Risk Outlook 2026
  • WEBINARS & FORUMS
    • All BTN News Desks
    • BTN Communities
    • VIEW ALL WEBINARS
    Beyond Booking: Is Business Travel Ready for the AI Travel Assistant?

    Thur., Oct. 8 at 10am PDT / 1pm EDT

    Sponsored by: Serko

    Why Your Travel Meal Policy Doesn't Work: And How to Design One That Does

    Wed., Sept. 30 at 10am PDT / 1pm EDT

    Sponsored by: Uber for Business

    What Global Travel Managers Expect Now

    Tues., Sept. 29 at 9am PDT / 12pm EDT

    Sponsored by: Cvent

  • EVENTS
    • Webinars
    • Business Travel Show
    • Business Travel Trends Forecasts
    • Business Travel Tech Talk
    • Business Travel ESG Summit
    • Entertainment, Sports & Media Travel Summit
    • Strategic Meetings Summit
    • Government Travel Summit
    • Global Travel Risk Summit
    • Business Travel Lodging Summit
    • Business Travel Hall of Fame
    • Business Travel Awards Europe
    • Travel Manager of the Year
    • VIEW ALL EVENTS
    3rd Annual Business Travel Tech Talk Montreal

    Le Centre Sheraton Montreal, September 16, 2026

    15th Annual Business Travel Tech Talk London

    etc.venues County Hall - 28 September

    11th Annual Entertainment Sports & Media Travel Summit Los Angeles

    Regent Santa Monica Beach - October 1, 2026

    10th Annual Strategic Meetings Summit Chicago

    Convene Willis Tower, Chicago - October 8, 2026

  • RESOURCES
    • BTN Academy
    • BTN Communities
    • BTN Primers
    • BTN Weekend Archives
    • Business Travel Buyer's Handbook
    • Business Travel Buyer's Techbook
    • Corporate Travel Index
    • Data Sources: The Reference Guide
    • Industry Terms Glossary
    • Hotel Search
    • Influencers
    • Traveler Experience Index
    • Webinars
    • White Papers & Case Studies
    BTN's Business Travel Management Tool Box

    The BTN Group has a variety of resources for corporate travel managers to build and refine their program strategies. Not sure where to begin? Check out this starter pack.

    BTN CTI Calculator - New Q1 2026 Data Added

    Filter in or out as many as 200 cities, as well as hotel and car rental class and meals of the day and watch as the per-diem calculator automatically adjusts per diems to your program. Drill down into cost breakdowns and export the results.

  • Business Travel News Supplier DirectorySUPPLIER DIRECTORY

Buyers Try Multiyear, Off-Season Hotel Deals

By Michael B. Baker / October 21, 2007 / Contact Reporter
Business Travel News on X
Some buyers, faced with increasingly complex hotel negotiations and a request-for-proposals process that seems never-ending, are considering negotiating rates outside of the usual season or enacting multiyear agreements with hotel chains. Consultants and hoteliers, however, warned that while such tactics can be effective for buyers in a strong negotiating position, they often can be counterproductive to travel budgets.

"We do have quite a few customers considering off-season negotiations, although it's maybe only 10 percent of clients," said Neysa Silver, director of Carlson Wagonlit Travel's hotel solutions group. "Multiyears also are starting to become more common, with some customers asking for two years. None are longer than that."

Regardless of the timing, buyers, hoteliers and consultants all reported that the timeframe for the hotel RFP process is getting longer. From the initial RFPs to actual negotiations to rate auditing at the beginning of the year, buyers and hoteliers often have no respite from shaping their hotel programs.

"It is an all-year-round process," said Jill Cady, vice president of worldwide sales strategy for InterContinental Hotels Group. "From the time they start considering their hotel program and reviewing the products they've got in place, they start thinking about the RFPs in the forthcoming years in May and June."

During the past few years, more tools and services have become available for travel buyers to administer the request-for-proposals process, Cady said. Each new tool adds nuance to the file specifications for the hundreds of fields of data involved, increasing administrative work for both travel managers and hotels, she said. Add to this the difficult negotiating environment through the persistent hotel seller's market of the past few years. At the same time, buyers face pressure from their companies to contain costs even as travel is growing, which currently is difficult through traditional negotiations.

"The corporate travel manager's job is more difficult than it has ever been," said Bjorn Hanson, principal of PricewaterhouseCoopers' hospitality and leisure group. "They're facing higher costs, and demands for travel are increasing."

Multiyear hotel agreements are one solution to which buyers are turning to ease the workload, similar to what many are doing in car rental negotiations (BTN, April 2). With the request-for-proposals process so labor-intensive, it's an attractive option to both sides of the negotiating table not to have to enter the process every year, said Priscilla Campbell, practice leader of hotel advisory services for American Express Business Travel.

Norma Rohrbach, vice president of global services sourcing for Citigroup, this summer, at an educational session on rate loading during the National Business Travel Association's annual conference in Boston, said her company recently switched to a multiyear strategy for hotel negotiations. By and large, hotels were receptive to multiyear agreements, she said.

"Our hotel program since 2005 has been a two-year," Rohrbach said. "Surprisingly, even though this is not our market and time to buy, we did get almost 50 percent of our hotels committed to two years at the same rate."

While a buyer with the clout of Citigroup might be able to lock in hotel rates for two years, consultants said most buyers have to take a different approach in multiyear agreements. CWT's Silver said in most cases, buyers will not get hotels to commit to 2009 rates this year.

"Hoteliers, looking at the way their systems work, will only price rates out for a year," Amex's Campbell said. "They'll pad that second year rate, allowing for potential increases."

Because of that, buyers considering multiyear agreements should ensure the ability to go back to those rates the following year if those increases turn out to be overinflated, she said. In fact, Bob Brindley, vice president of the Americas for BCD Travel's Advito consulting division, said the forecast for increased supply means that multiyear agreements might not be the best strategy this year.

"There's going to be a lot of new capacity coming into the market in 2009, which I think bodes well for clients," Advito's Brindley said. "I don't know that I'd want to lock in two-year rates now."

Some buyers also are moving their negotiations out of the usual autumn negotiating season, although this is not a strategy consultants often recommend. Amex's Campbell said some hotels are becoming more receptive, as their volume of RFPs increase, to soften the seasonal crunch. "I've seen a few thinking that if they started in April, they'd have a different kind of attention," IHG's Cady said.

The problem, Cady said, is this ends up putting an administrative burden on hoteliers. Some hoteliers might not be able to accommodate off-season negotiations at all because their internal technology does not support them, Amex's Campbell said.

Bob Peper, CEO of Colville, Wash.-based RFP provider Lodging Logistics, said he's seen a few more clients interested in off-season negotiations, although not anywhere near the number looking into multiyear agreements.

"It conflicts with how the hotels handle their own budgeting and pricing, so those that start early end up paying a price," Peper said. "The buyers' thought is to get more attention, but it doesn't quite work that way, because the hotels are geared up to facilitate this in-season."

Often, the choice to seek hotel agreements outside of the regular negotiation season is utilitarian, CWT's Silver said. Buyers, for example, might be trying to tie negotiations into a company fiscal year that differs from the calendar year, she said.

Even so, Silver also said she sees buyers more frequently wanting to negotiate mid-year to reevaluate their hotel programs. More often, they're bringing in outside sources to assist in examining the data.

"They're looking at whether travel patterns are changing, reviewing on a quarterly or monthly basis, seeing if they should make changes," she said. "They're taking a stronger interest in the data."
More

Sponsored Content

VIEW ALL
Upper Class. Built for business.
Upper Class. Built for business.By Virgin Atlantic
Work trip or holiday? Make it both.
Work trip or holiday? Make it both.By The Ascott Limited
Business Travel's Problem Was Never the TMC. It's the Technology They've Been Handed.
Business Travel's Problem Was Never the TMC. It's the Technology They've Been Handed.By Engine

Subscribe to Free

BTN Newsletters

pixel2

Click Here for our Terms and Conditions and Privacy Policy.

  • Most Read
  • Most Shared
  1. Avrio: Supply Constraints Bolster Pricing Even if Demand Slips
  2. As Hotel Rates Rise, Buyers Weigh a Changing Procurement Landscape
  3. CTM Releases Audited Results Prior to ASX Deadline, Plans Steps Forward
  4. Navan to Add Engine's Capabilities for Hotel Flexibility, Group Travel
  5. Delta to Expand SkyMiles for Business Elite Features
  1. Radisson, Finnair Partner on Loyalty
  2. Star Alliance to Open Lounge at Seoul's Incheon Airport
  3. Marriott, Spotnana Unveil CRS Integration
  4. Travel Tech Frustrations? Innovation Faceoff at Business Travel Show America Offers Antitode
  5. Traxo Integrates Data Flow to Everbridge
Business Travel NewsBusiness Travel News
  • About Us
  • Contact Us
  • Advertise
  • Business Travel News on X
  • Business Travel News on LinkedIn
  • Business Travel News on Facebook
BUSINESS TRAVEL NEWS
NORTHSTAR TRAVEL GROUP
Business Travel News
  • About Us
  • Contact Us
  • Media Kit
  • Subscribe to Newsletters
  • Advertise
  • Editorial Guidelines
  • BTN Europe
  • Purchase Reprints
  • Privacy Policy
  • Terms & Conditions
  • Do Not Sell or Share My Data
Northstar Travel Group
  • Retail Travel
  • Travel Weekly
  • Travel Weekly Asia
  • TravelAge West
  • TravelPulse
  • TravelPulse Canada
  • TravelPulse Quebec

  • Hotel Investment
  • Burba Hotel Network

  • Travel Technology
  • Inntopia
  • Phocuswire
  • Phocuswright
  • Web In Travel
  • Meetings & Incentives
  • Northstar Meetings Group
  • Meetings & Conventions
  • Meetings & Conventions China
  • Meetings & Conventions Asia
  • Meeting News
  • Successful Meetings
  • Incentive
  • SportsTravel

  • Data Products
  • Agent Studio
  • AXUS Travel App
  • Intelliguide
  • travel42
BTNGroup
Business Travel NewsBusiness Travel News EuropeTravel ProcurementThe BeatBusiness Travel Show
Northstar Travel Group
Copyright ©2026 Northstar Travel Media LLC. All Rights Reserved. 301 Rte. 17N, Suite 1150, Rutherford, NJ 07070 USA | Telephone: (201) 902-2000
RRManagement rrtestprocurement