INSIDE THE MODERN HOTEL PROGRAM: HOW CORPORATE TRAVEL MANAGERS ARE REDEFINING SOURCING AND STRATEGY
New research highlights how travel buyers are modernizing rate structures, embracing innovation and adapting to traveler expectations. |
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INSIDE THE MODERN HOTEL PROGRAM: HOW CORPORATE TRAVEL MANAGERS ARE REDEFINING SOURCING AND STRATEGY
New research highlights how travel buyers are modernizing rate structures, embracing innovation and adapting to traveler expectations. |
Category: Worldwide - Industry economy
- Careers
- Trends / Expert's advice - Career
This is a press release selected by our editorial committee and published online for free on 2025-06-18
 Photo credit © Radisson Hotel Group
Travel buyers are looking to embrace more flexible rate strategies, modernize request-for-proposal (RFP) processes and adapt to the expectations of a next-generation workforce—all while navigating rising costs and persistent program gaps.
This is according to new research released today by the Global Business Travel Association (GBTA), the world's largest business travel association, in partnership with Radisson Hotel Group, one of the largest and most dynamic hotel groups, operating in EMEA and APAC with over 1,565 hotels in operation and under development in +100 countries.
The report – The Evolution of Managed Hotel Programs – finds corporate travel managers are seeking innovation within the accommodation procurement process, with annual procedures seen as outdated, expensive and inefficient.
“This research conducted by GBTA and made possible by the Radisson Hotel Group provides essential insights into the dynamics facing hotel programs today. Travel managers must continue to adapt their strategies in response to shifting business needs, rising costs, and changing traveler expectations to be able to build more resilient and responsive programs for the future,” said Suzanne Neufang, CEO, GBTA.
“In today's fast-changing travel landscape, our partners are under more pressure than ever to balance value, compliance, and traveler satisfaction. This whitepaper, developed in partnership with GBTA, reflects our deep commitment to supporting travel managers with the insights, benchmarks, and strategies they need to build smarter, more resilient travel programs. As personalization, dynamic pricing, and tech-driven expectations reshape the corporate travel experience, we're here to help businesses navigate the complexity and turn it into opportunity,” said Johanna Wessman Fresnel, Senior Director & Head of Global Accounts, Radisson Hotel Group.
Decision Influencers: Company-Negotiated Rates, Proximity and Traveler Preferences
When travel buyers sit down to curate a list of preferred hotels, the decision-making process is clear—and deeply strategic.
Price remains king, with 83% prioritizing company-negotiated rates, discounts, and fixed pricing structures. But the importance of location runs a close second: 82% look for properties near their own offices, while 44% want to be close to client locations.
Behind the scenes, travel managers are working to balance flexibility with financial control. Dynamic pricing models (used by 77%) and chain-wide discounts (74%) are gaining ground. In fact, half of travel managers say dynamic pricing is the fastest-growing approach in their programs. Still, a clear preference has emerged: 60% say the ideal setup is a hybrid model, blending fixed and dynamic rates at the property level to ensure both savings and adaptability.
Meanwhile, employees themselves are becoming more engaged in the process. Travel managers report that nearly 57% now occur at hotels with company-negotiated rates—evidence that employees are actively seeking value and alignment with company policies.
Looking ahead, 78% of travel managers believe younger generations (Gen Z and Gen Alpha) will influence hotel booking preferences. Ease of booking (79%) and tech-forward hotel experiences (61%) are expected to be top priorities for these emerging business travelers.
Opportunities for Innovation in the Hospitality Process
Many travel managers are interested in a host of RFP innovations, particularly multi-year fixed rate agreements (64% are interested or have an arrangement), spend-based targets (60%), share-based targets (50%), and evergreen dynamic arrangements (52%).
There is also a growing role for online booking tools (OBTs) with 42% saying OBT hotel bookings have increased in the past year, and 74% expect an increase in the next three years. Additionally, over the past year, larger numbers of buyers say direct (34%) and Online Travel Agency (OTA) (28%) bookings are decreasing.
Addressing the Gaps for Travel Managers
Travel managers report their programs face gaps in certain cities, with availability gaps (25%) and preferred coverage gaps (21%) being most frequent. Cities with the greatest gaps include London, Paris, Berlin, Amsterdam and Dubai.
While 44% of travel managers identify gaps in the hotel procurement landscape, particularly around sustainability (57%), spending standards (55%), and carbon measurement (51%), there is growing recognition of the value of benchmarks. Half of buyers (52%) find sustainability benchmarks useful, though a significant portion remain uncertain (29%) or unconvinced (18%).
Sourcing the Best Rates and Options
Non-Global Distribution System (GDS) channels are gaining favor, with 62% of travel managers citing lower prices and greater options as key benefits. Other advantages include rate accuracy (36%), better shopping experiences (31%), and greater flexibility (31%).
While virtually all travel managers (93%) say their Travel Management Company (TMC) has its own preferred rates, only 39% of travel programs conduct TMC or OBT audits multiple times a year and have strong oversight in place.
Outlook for 2025 Business Travel Spending
Three in four (77%) corporate travel managers surveyed expect their business travel spending will be higher or the same in 2025 compared to 2024. Of those, 67% cite higher travel prices, company expansion (55%) and increased employee travel (54%) as the top reasons for increased spending.
Methodology
A total of 234 responses were received between April 29 - May 5, 2025, from travel managers across the U.S. and Europe (Austria, Denmark, Finland, France, Germany, Ireland, Italy, Lithuania, Luxembourg, Netherlands, Norway, Poland, Portugal, Slovakia, Spain, Sweden, Switzerland and the United Kingdom).
Radisson Hotel Group
Radisson Hotel Group is a rapidly expanding international hotel group, operating in EMEA and APAC with over 1,565 hotels in operation and under development in +95 countries. The Group's overarching brand promise is Every Moment Matters with a signature Yes I Can! service ethos.
The Radisson family of brands portfolio includes Radisson Collection, art'otel, Radisson Blu, Radisson, Radisson RED, Radisson Individuals, Park Plaza, Park Inn by Radisson, Country Inn & Suites by Radisson, and Prize by Radisson brought together under one commercial umbrella brand Radisson Hotels.
Radisson Rewards is Radisson Hotel Group's loyalty program, which delivers an elevated experience that makes Every Moment Matter, counting more than 20 million members. As the most streamlined program in the sector, members enjoy exceptional advantages and can access their benefits from day one across a wide range of hotels in Europe, Middle East, Africa, and Asia Pacific.
Radisson Meetings provides tailored solutions for any event or meeting, including hybrid solutions placing guests and their needs at the heart of its offer. Radisson Meetings is built around three strong service commitments: Personal, Professional and Memorable, while delivering on the brilliant basics and being uniquely Carbon Compensated.
At Radisson Hotel Group we care for people, communities and planet and aim to be Net Zero by 2050 based on the approved Science Based Targets. With unique solutions such as carbon compensated Radisson Meetings, we make sustainable hotel stays easy. To facilitate sustainable travel choices, all our hotels are becoming verified on Hotel Sustainability Basics.
The health and safety of guests and team members remain a top priority for Radisson Hotel Group. All properties across the Group's portfolio are subject to health and safety requirements, ensuring we always care for our guests and team members.
About GBTA
The Global Business Travel Association (GBTA) is the world's premier business travel and meetings trade organization serving stakeholders across six continents. GBTA and its 8,500+ members represent and advocate for the $1.48 trillion global business travel and meetings industry. GBTA and the GBTA Foundation deliver world-class education, events, research, advocacy, and media to a growing global network of more than 28,000 travel professionals and 125,000 active contacts.
 Photo credit © Radisson Hotel Group
 Photo credit © Radisson Hotel Group
 Photo credit © Radisson Hotel Group
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