The role of corporate negotiated rates has significantly shifted in the past six months. For those unfamiliar with the concept, corporate negotiated rates - known as CNRs - are the discounted room rates agreed on between an organization and hotel for a specific period of time. The best TMCs and consulting agencies organize them on behalf of enterprises.
These long-standing rates are not quite as valuable as they once were with temporary hotel closures, aggressively priced OTA (Online Travel Agency) rates, and even publicly-available rates that undercut CNRs. There are also new challenges around the RFP process as understaffed hotels might not be able to manage RFPs, leaving corporations without a clear path forward.
With personnel limited on the hotel and corporate sides, the ROI of building large hotel programs is called into question. Enterprises require reliable information in order to set negotiation terms, but our unique situation and future uncertainty makes this task seemingly impossible.
We’re sitting down with Elaine Kennedy, Vice President of Hotel Market Planning at Pegasus, Calvin Anderson, Chief Commercial Officer at Domio, and Tara Stangel, Head of Lodging Supply at TripActions, to talk through these changes, what to expect from the future of corporate negotiated rates and hotel RFPs, and what you need to do to properly prepare for this new reality.
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