Are you ready for a more restrictive hotel landscape?

Introducing Mind the Gap a new series of insight pieces from our GBC team, helping you identify and resolve gaps in your travel program. First up we have Anu Kuchibhotla , Hotel Practice Line Lead.

Travelers today want more flexibility over their travel plans – but it seems hospitality is pulling in the opposite direction. At Amex GBT, we’re seeing fewer last-minute bookings versus 2019 and hotels becoming more restrictive, moving to 48 or even 72 hours as their standard cancellation period.

There are several reasons why hotels are less likely to offer flexibility to transient business travelers. For now, leisure continues to compete with corporate travel; while hotels can continue to drive high rates from leisure travelers, they’re less likely to negotiate with business travelers who want rooms on the same nights.?????

And, with demand for group travel and meetings looking strong into 2023, hotels will likely continue to receive a higher proportion of revenue from meetings and events than previous years.??????????????????

How you can mind the gap:

• Pay attention to cancellation times, especially in Asia and in destinations with restrictions. Set up auto-reminders for travellers four to five days ahead of their stay dates to check cancellation terms and cancel bookings if not needed.
• If you’re a non-US company traveling into the US, consider booking down a hotel tier to avoid forex effects.
• Focus negotiations on your key cities; use TMC rates and third-party content in your smaller cities. Re-shop to take advantage of opportunities.????????

Check out Hotel Prices 2023 – Global Business Consulting’s forecast for hotel price movements in 25 of the world’s top business destinations.?Includes advice for sourcing your 2023 hotel program.