Increasing hotel rates as well as growing rate volatility suggest the next round of corporate hotel negotiations will be a complex endeavor, according to a FCM Consulting report, released Wednesday.
Global average 2025 corporate hotel rates increased $18 year over year to $208, according to FCM Consulting's new Global Hotel Insights Report, based on FCM Travel and Flight Centre Travel Group booking data. In North America, the average rate rose $40 to $291, the sharpest regional increase, and in Europe it rose $25 to $217.
The average 2025 corporate rate in Asia held roughly steady at $173, while it increased in the Middle East and Africa (up $27 to $234) but declined in Australia and New Zealand (down $5 to $147).
The Insights Report is the first standalone paper on hotel program management produced by FCM Consulting and was produced to "support buyers as they prepare for their next sourcing cycle," said FCM Consulting global head of customer management Jo Lloyd in an accompanying letter.
To that end, Lloyd noted that "geopolitical tensions, regulatory changes, and extreme weather events are affecting travel patterns and hotel availability in ways that are difficult to forecast," adding that "hotel sourcing is becoming more nuanced."
According to the report, some of that volatility is emerging in hotels' public best available rates throughout the world, which FCM said can fluctuate as much as $62. Additionally, according to the report, booking windows for corporate travel have slid in recent years and now can average less than 10 days before the date of departure.
Meanwhile, FCM reported that in the first round of negotiations with buyers for 2026 corporate hotel programs, 27 percent of hoteliers' first round of proposed rates were dynamic—adjustable based on demand at a given property on a given date. After negotiations, about 23.5 percent of accepted program rates were dynamic.
RELATED: Unclear Market, Sourcing Strategy Keeps 2026 Corp. Hotel Rates in Check
"In the Americas, hotel sourcing is no longer about simply locking in the lowest rate," said Ashley Gutermuth, head of FCM Consulting in the Americas, in a statement. "The buyers who win in 2026 will be those who treat their hotel program as a strategic asset, not a procurement exercise. Success will come from aligning sourcing strategy with pricing volatility, traveler needs, and supplier behavior."