5 hotel contracting trends corporate travel buyers need to know

From dynamic data to shifting traveller expectations, corporate travel buyers now have an opportunity to reassess how they manage and negotiate their hotel programs to maximise value and efficiency.

CTM’s Chief Partnership Officer and Global Hotel Programs, Erik Shor and Lisa Stephens, VP Partner Solutions Consulting, spotlight five hotel contracting trends shaping the future.

1. Real-time data is driving smarter decisions

Traditionally, hotel programs have relied on retrospective data to guide annual RFPs and rate negotiations. Today, there’s a shift toward real-time insights and predictive analytics that help inform proactive strategies. Instead of focusing on what happened last year, hotel programs need to move in the direction of leveraging market data, traveller behaviours and supplier performance to guide short-term and long-term decisions.

“To build a successful hotel program, travel buyers need to go beyond historical data. They should be using predictive insights to anticipate demand, identify emerging markets, and assess future supplier value. Where future volume is uncertain, they should lean on their TMC’s hotel program to unlock value and flexibility,” says Shor.

“It’s no longer helpful to only look back. We are here to help customers make real-time adjustments,” adds Stephens.

2. Static rate RFPs are losing relevance

The annual RFP process, once the cornerstone of hotel contracting, is slowly being replaced by dynamic rates as hotels become more sophisticated in their approach to revenue management. For companies without high room-night volumes in specific markets (e.g. 250+ nights per property), negotiated rates may not offer the best value. Instead, leaning into TMC-preferred rates such as CTM’s Global Hotel Program, dynamic pricing, distressed inventory and benefiting from hotel content distribution platforms like CTM’s Sleep Space, offering a wide range of hotel content, efficiency, and cost savings will drive the best value.

“If you’re sourcing for 30 room nights at one property, that’s prehistoric,” says Shor. “This is where multi-tiered hotel programs will provide greater benefit in driving value through choice and stretching travel budgets further. And importantly, savings are not measured solely on contracted rates, we can measure hotel savings no matter which rate you choose.”

CTM’s data shows that in destinations where customers book fewer than 250 room nights, CTM’s rates outperformed customer-contracted rates by providing savings of at least 5%, with some destinations delivering 10–30% additional savings. These savings are further enhanced by reduced administrative burden, eliminating the time and resources required to manage individual hotel negotiations. This enables travel and procurement managers to redirect their focus toward more strategic initiatives, delivering greater value back to the business.

Stephens adds: “Travel buyers can still have a robust travel program where you may need to conduct an RFP in markets for volume-driven business. But where there is low volume, it’s time to move away from the old pushing the paper back and forth. The hotel content available via online booking tools can offset that need, especially in lower-volume markets where the RFP outcome is no longer valuable as it once was. We are witnessing customers bypass negotiated rates because they’re often unavailable at the time of booking and instead booking other rate plans or room types, or not competitive with dynamic pricing. Despite the time invested in securing these rates, if travellers can’t access them when needed, the value of the negotiated deal is significantly reduced.

3. Direct distribution and attribute-based selling are rising

Select hotels are increasingly prioritising direct distribution strategies, offering unique perks such as bonus loyalty points or attribute-based selling (e.g. high floor, early check-in) that are not always visible in traditional GDS channels. CTM has responded with an alternative hotel content platform, CTM Sleep Space, which delivers unique content and real-time updates that are not typically available through legacy channels like the GDS or online travel agents (OTAs). Accessible via online channels (OBT, Mobile app) or offline, the platform also forms part of CTM’s future roadmap to deliver special offers and personalised experiences, without compromising travel program control.

“The development of Sleep Space provides us an opportunity to tap into an alternative hotel distribution channel that will help drive more personalisation and tailored offers to both the travel buyer, but most importantly to the end user, the traveller,” adds Shor.

4. Personalisation and traveller-centric contracting

As traveller expectations evolve, hotel programs must reflect more than just price. Travellers, especially younger generations, value amenities like onsite fitness and wellness facilities, onsite dining and location-specific features. To tailor hotel options that align with company company culture, traveller preferences, and trip purpose, organisations should actively gather feedback through regular post-trip surveys, hotel reviews and traveller sentiment data. CTM support this by leveraging booking data and traveller insights to identify emerging trends and gaps in hotel content, helping travel buyers make more informed, traveller-centric decisions.

It will also be important to work with your TMC to review the volume and relevance of hotel content available to them. While flexibility is key, too many ‘rate types’ per hotel or brand can create confusion, reduce hotel attachment and lead to travellers booking directly, risking program leakage, missed savings and duty of care implications.

“Best-in-class travel programs now align with traveller expectations, not just cost,” said Erik Shor.

New hotel brands and lifestyle concepts are also entering the market, creating opportunities to align accommodation options with diverse workforce demographics and preferences.

5. Traveller wellbeing and hotel strategy go hand-in-hand

There’s a growing focus on hotels as an enabler of traveller productivity and wellbeing. From in-room fitness gear to healthy food offerings, accommodation is now part of the overall employee experience strategy. Travel managers are encouraged to reassess which hotel partners align with their workforce values and support business travel that’s both productive and enjoyable.

As hotel sourcing evolves, travel buyers have the opportunity to rethink the value of traditional processes and focus on strategic contracting that delivers measurable value. From embracing smarter tech, focusing on real-time data to aligning with evolving traveller expectations, now is the time to modernise your approach and maximise return from your hotel program.