The 2017 hotel RFP season proved more favorable for buyers than in recent years, as corporates saw softer rate increases than projected and a slightly more amenable negotiating climate as the season progressed, according to a new report from Business Travel News.
Year-over-year, Carlson Wagonlit Travel clients saw 1% to 2% average daily rate increases in both the U.S. and Canada. On the West Coast of the U.S., clients experienced ADR increases of 3% to 7%, which were still below CWT’s initial projections. Rates in Latin and South America declined 2% to 4% year-over-year. Results in Europe and Asia Pacific proved to be a mixed bag, as rate increases sat between 0% and 2% in both regions. Middle East hotel rates plummeted between 6% and 8%.
CWT’s results are on par with the rate increases BCD consultancy Advito reported.
The report added that the recent merger of Marriott International and Starwood Hotels & Resorts had little impact on the 2017 hotel RFP season.
The report also concluded that an expected shift to greater use of the dynamic pricing model didn’t quite happen during the 2017 RFP season.