Global
2012 hotel negotiations to date: higher rates, fewer 'extras' for buyers
Global perspective
As 2011 draws to a close, corporate travel buyers worldwide are busy finalizing their managed
hotel programs for 2012, in an effort to have as many negotiated rates as possible loaded into the
global distribution systems (GDSs) and available for travelers to book beginning January 1. Most
CWT Solutions Group clients are in the middle to final stages of negotiations with hoteliers now,
with some reaching agreement during the second round, and still others going into a third round
of negotiation.
While the rates agreed upon during negotiations are meant to apply for the entire calendar year to follow, buyers and hoteliers could come back to the negotiating table during 2012 if conditions for either side significantly change. For example, in 2009 many CWT Hotel Solutions Group clients renegotiated lower hotel rates as demand substantially decreased and hotels were willing to offer deep discounts to drive business. For 2012, CWT anticipates renegotiations could be possible in some European locations mid-year, depending on the outcome of ongoing economic challenges throughout the region.
