Buyers and hoteliers scrapped for decades over contracted last room
availability, only to find via new data sources like Tripbam and Yapta
that revenue management practices were blocking negotiated rates and
that LRA contracts “weren’t worth the paper they’re written on,” as
Tripbam founder and CEO Steve Reynolds told BTN in 2015.
Data consolidation tools like Carlson Wagonlit Travel’s AnalytIQs,
American Express Global Business Travel’s Premier Insights
and Omega World Travel’s
Omegalytics have afforded corporates better views of their
hotel spend. Yet, with line-item
invoice data still a rarity, corporates continue to spend a
significant portion of the RFP
season negotiating for amenities they can’t be certain their
“We had a customer panel
and I asked, ‘What percentage
of your travelers eat breakfast
at the hotel?’” said HRS head
of corporate sourcing for the
Americas Jeff Hillenmayer. “Ev-
eryone said, ‘I don’t know.’ So
if we don’t know, why are we
Additionally, buyers and ho-
tels continue to make room-
night commitments even though
marketshare data isn’t tracked
or standardized on both sides of
the negotiating table. Instead,
Reynolds said, when it’s time to
renegotiate, buyers and hotels
have to play an annual game of
Whose Data Is Right?
While hardly exhaustive, the
following models range from
tweaks on the current model to
a radical overhaul of the procurement process.
The Off-Cycle Model. This re-
mains an annual process, but
buyers shift their bidding pro-
cess away from the typical July/
September/August start dates.
Haemonetics global category
manager for travel, fleet and
card services Sharon Fogarty
is in her third year of going off
cycle with her RFP process,
which now follows Haemonet-
ics’ April-to-March fiscal year.
“It makes it so much easier for
my hotel partners, as well as for
myself, because it’s a quieter season,” she said. Hotel negotiations for
her program now begin in January or February, and from hoteliers, she
gets better benchmarking data, service and initial bids. Hilton executive
director of business travel sales Maria Chevalier said clients have had
great success going off cycle, and it’s a practice Hilton is encouraging
more corporates to adopt.
GDS code: BW
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